2005 Minnesota Statutes

CHAPTER 256J. Minnesota family investment program

     256J.01 Establishing Minnesota family investment program.

    Subdivision 1.    Implementation of Minnesota family 
 investment program (MFIP).  Except for section 256J.95, this 
 chapter and chapter 256K may be cited as the Minnesota family 
 investment program (MFIP).  MFIP is the statewide implementation 
 of components of the Minnesota family investment plan (MFIP) 
 authorized and formerly codified in section 256.031 and 
 Minnesota family investment plan-Ramsey County (MFIP-R) formerly 
 codified in section 256.047. 

    Subd. 2.    Implementation of temporary assistance for 
 needy families (TANF).  The Personal Responsibility and Work 
 Opportunity Reconciliation Act of 1996, Public Law 104-193, 
 eliminates the entitlement program of aid to families with 
 dependent children (AFDC) and replaces it with block grants to 
 states for temporary assistance for needy families (TANF).  TANF 
 provides cash assistance for a limited time to families with 
 children and to pregnant women.  Minnesota's TANF assistance 
 will be provided through a statewide expansion of MFIP.  The 
 modifications specified in this chapter are necessary to comply 
 with the new federal law and to improve MFIP.  Eligible 
 applicants and recipients of AFDC, family general assistance, 
 and food stamps will be converted to the MFIP program.  
 Effective January 1, 1998, any new application received for 
 family cash assistance will be processed under the rules of this 
 chapter.  Case maintenance conversion for existing AFDC and FGA 
 cases to MFIP-S as described in this chapter will begin January 
 1, 1998, and continue through March 31, 1998.  

    Subd. 3.    Relationship to other statutes and rules.  
 MFIP-S replaces eligibility for families with children and 
 pregnant women under the general assistance program, governed by 
 sections 256D.01 to 256D.21 and Minnesota Rules, parts 9500.1200 
 to 9500.1270.  

    Subd. 4.    Changes to waivers.  The commissioner of 
 human services may negotiate and obtain changes in the federal 
 waivers and terms and conditions contained in MFIP, MFIP-R, and 
 MFIP-S.  The commissioner may also terminate federal waivers by 
 directing so in the applicable state plan. 

    Subd. 5.    Compliance system.  The commissioner shall 
 administer a compliance system for the state's temporary 
 assistance for needy families (TANF) program, the food stamp or 
 food support program, general assistance, medical assistance, 
 general assistance medical care, emergency general assistance, 
 Minnesota supplemental aid, preadmission screening, child 
 support program, and alternative care grants under the powers 
 and authorities named in section 256.01, subdivision 2.  The 
 purpose of the compliance system is to permit the commissioner 
 to supervise the administration of public assistance programs 
 and to enforce timely and accurate distribution of benefits, 
 completeness of service and efficient and effective program 
 management and operations, to increase uniformity and 
 consistency in the administration and delivery of public 
 assistance programs throughout the state, and to reduce the 
 possibility of sanction and fiscal disallowances for 
 noncompliance with federal regulations and state statutes. 

    HIST: 1997 c 85 art 1 s 1; 1999 c 159 s 77; 1Sp2001 c 9 art 10 
 s 66; 1Sp2003 c 14 art 1 s 8,106; 2004 c 288 art 4 s 28 

     256J.02 Federal temporary assistance for needy families 
  block grant. 

    Subdivision 1.    Commissioner's authority to administer 
 block grant funds.  The commissioner of human services is 
 authorized to receive, administer, and expend funds available 
 under the TANF block grant authorized under title I of Public 
 Law 104-193, the Personal Responsibility and Work Opportunity 
 Reconciliation Act of 1996. 

    Subd. 2.    Use of money.  State money appropriated for 
 purposes of this section and TANF block grant money must be used 
 for: 

    (1) financial assistance to or on behalf of any minor child 
 who is a resident of this state under section 256J.12; 

    (2) the health care and human services training and 
 retention program under chapter 116L, for costs associated with 
 families with children with incomes below 200 percent of the 
 federal poverty guidelines; 

    (3) the pathways program under section 116L.04, subdivision 
 1a; 

    (4) welfare to work transportation authorized under Public 
 Law 105-178; 

    (5) reimbursements for the federal share of child support 
 collections passed through to the custodial parent; 

    (6) reimbursements for the working family credit under 
 section 290.0671; 

    (7) program administration under this chapter; 

    (8) the diversionary work program under section 256J.95; 

    (9) the MFIP consolidated fund under section 256J.626; and 

    (10) the Minnesota Department of Health consolidated fund 
 under Laws 2001, First Special Session chapter 9, article 17, 
 section 3, subdivision 2. 

    Subd. 3. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 4.    Authority to transfer.  Subject to 
 limitations of title I of Public Law 104-193, the Personal 
 Responsibility and Work Opportunity Reconciliation Act of 1996, 
 as amended, the legislature may transfer money from the TANF 
 block grant to the child care fund under chapter 119B, or the 
 Title XX block grant. 

    Subd. 5.    Indirect cost liability.  Notwithstanding 
 the provisions of section 16A.127, the statewide and agency 
 indirect cost liability identified as part of the TANF grant for 
 any current fiscal year shall be limited to no more than the 
 amount received in fiscal year 1996. 

    HIST: 1997 c 85 art 1 s 2; 1998 c 407 art 6 s 18; 1999 c 245 
 art 6 s 5; 2000 c 488 art 10 s 6; 1Sp2003 c 14 art 1 s 9; art 11 
 s 11 

     256J.021 Separate state program for use of state money. 

    Beginning October 1, 2001, and each year thereafter, the 
 commissioner of human services must treat MFIP expenditures made 
 to or on behalf of any minor child under section 256J.02, 
 subdivision 2, clause (1), who is a resident of this state under 
 section 256J.12, and who is part of a two-parent eligible 
 household as expenditures under a separately funded state 
 program and report those expenditures to the federal Department 
 of Health and Human Services as separate state program 
 expenditures under Code of Federal Regulations, title 45, 
 section 263.5. 

    HIST: 1Sp2001 c 9 art 10 s 5; 2002 c 379 art 1 s 113; 1Sp2003 
 c 14 art 1 s 10 

  256J.03 Repealed, 1999 c 245 art 1 s 20 

     256J.06 Community involvement. 

    The MFIP program must be administered in a way that, in 
 addition to the county agency, other sectors in the community 
 such as employers from the public and private sectors, 
 not-for-profit organizations, educational and social service 
 agencies, program participants, labor unions, and neighborhood 
 associations are involved. 

    HIST: 1997 c 85 art 1 s 3; 1Sp2001 c 9 art 10 s 66 

     256J.08 Definitions. 

    Subdivision 1.    Scope of definitions.  The terms used 
 in this chapter have the following meanings unless otherwise 
 provided for by text. 

    Subd. 2.    Absent parent.  "Absent parent" means a 
 minor child's parent who does not live in the same home as the 
 child. 

    Subd. 3.    Agency error.  "Agency error" means an error 
 that results in an overpayment or underpayment to an assistance 
 unit and is not caused by an applicant's or participant's 
 failure to provide adequate, correct, or timely information 
 about income, property, household composition, or other 
 circumstances. 

    Subd. 4.    Appeal.  "Appeal" means a written statement 
 from an applicant or participant who requests a hearing under 
 section 256J.31.  

    Subd. 5.    Applicant.  "Applicant" means a person who 
 has submitted to a county agency an application and whose 
 application has not been acted upon, denied, or voluntarily 
 withdrawn. 

    Subd. 6.    Application.  "Application" means the 
 submission by or on behalf of a family to a county agency of a 
 completed, signed, and dated form, prescribed by the 
 commissioner, that indicates the desire to receive assistance. 

    Subd. 7.    Assistance unit or MFIP assistance unit.  
 "Assistance unit" or "MFIP assistance unit" means a group of 
 mandatory or optional people receiving or applying for MFIP 
 benefits together. 

    Subd. 8.    Authorized representative.  "Authorized 
 representative" means a person who is authorized, in writing, by 
 an applicant or participant to act on the applicant's or 
 participant's behalf in matters involving the application for 
 assistance or participation in MFIP. 

    Subd. 9.    Basic needs.  "Basic needs" means the 
 minimum personal requirements of subsistence and is restricted 
 to food, clothing, shelter, utilities, and other items for which 
 the loss, or lack of basic needs, is determined by the county 
 agency to pose a direct, immediate threat to the physical health 
 or safety of the applicant or participant. 

    Subd. 10.    Budget month.  "Budget month" means the 
 calendar month which the county agency uses to determine the 
 income or circumstances of an assistance unit to calculate the 
 amount of the assistance payment in the payment month. 

    Subd. 11.    Caregiver.  "Caregiver" means a minor 
 child's natural or adoptive parent or parents and stepparent who 
 live in the home with the minor child.  For purposes of 
 determining eligibility for this program, caregiver also means 
 any of the following individuals, if adults, who live with and 
 provide care and support to a minor child when the minor child's 
 natural or adoptive parent or parents or stepparents do not 
 reside in the same home:  legal custodian or guardian, 
 grandfather, grandmother, brother, sister, half-brother, 
 half-sister, stepbrother, stepsister, uncle, aunt, first cousin 
 or first cousin once removed, nephew, niece, person of preceding 
 generation as denoted by prefixes of "great," "great-great," or 
 "great-great-great," or a spouse of any person named in the 
 above groups even after the marriage ends by death or divorce. 

    Subd. 11a.    Child only case.  "Child only case" means 
 a case that would be part of the child only TANF program under 
 section 256J.88. 

    Subd. 12.    Client error.  "Client error" means an 
 error that results in an overpayment or underpayment and is due 
 to an applicant's or participant's failure to provide adequate, 
 correct, or timely information concerning income, property, 
 household composition, or other circumstances. 

    Subd. 13.    Commissioner.  "Commissioner" means the 
 commissioner of human services or the commissioner's designated 
 representative. 

    Subd. 14.    Corrective payment.  "Corrective payment" 
 means an assistance payment that is made to correct an 
 underpayment. 

    Subd. 15.    Countable income.  "Countable income" means 
 earned and unearned income that is not excluded under section 
 256J.21, subdivision 2, or disregarded under section 256J.21, 
 subdivision 3. 

    Subd. 16.    Counted earnings.  "Counted earnings" means 
 the earned income that remains after applicable disregards under 
 section 256J.21, subdivision 4, have been subtracted from gross 
 earned income. 

    Subd. 17.    County agency.  "County agency" means the 
 agency designated by the county board to implement financial 
 assistance for current programs and for MFIP and the agency 
 responsible for enforcement of child support collection, and a 
 county or multicounty agency that is authorized under sections 
 393.01, subdivision 7, and 393.07, subdivision 2, to administer 
 MFIP. 

    Subd. 18.    County board.  "County board" means a board 
 of commissioners, a local services agency as defined in chapter 
 393, a board established under the Joint Powers Act, section 
 471.59, or a human services board under chapter 402. 

    Subd. 19.    County of financial responsibility.  
 "County of financial responsibility" means the county that has 
 financial responsibility for providing public assistance as 
 specified in chapter 256G. 

    Subd. 20.    County of residence.  "County of residence" 
 means the county where the caregiver has established a home. 

    Subd. 21.    Date of application.  "Date of application" 
 means the date on which the county agency receives an 
 applicant's signed application. 

    Subd. 22.    Deem.  "Deem" means to treat all or part of 
 the income of an individual who is not in the assistance unit, 
 but who is financially responsible for members of the assistance 
 unit, as if it were income available to the assistance unit. 

    Subd. 23.    Department.  "Department" means the 
 Minnesota Department of Human Services. 

    Subd. 24.    Disregard.  "Disregard" means earned income 
 that is not counted when determining initial eligibility or 
 ongoing eligibility and calculating the amount of the assistance 
 payment for participants.  The commissioner shall determine the 
 amount of the disregard according to section 256J.24, 
 subdivision 10. 

    Subd. 24a.    Disqualified.  "Disqualified" means being 
 ineligible to receive MFIP due to noncooperation with program 
 requirements.  Except for persons whose disqualification is 
 based on fraud, a disqualified person can take action to correct 
 the reason for ineligibility.  

    Subd. 24b.    Diversionary work program or DWP.  
 "Diversionary work program" or "DWP" has the meaning given in 
 section 256J.95. 

    Subd. 25.    Documentation.  "Documentation" means a 
 written statement or record that substantiates or validates an 
 assertion made by a person or an action taken by a person, 
 agency, or entity. 

    Subd. 26.    Earned income.  "Earned income" means cash 
 or in-kind income earned through the receipt of wages, salary, 
 commissions, profit from employment activities, net profit from 
 self-employment activities, payments made by an employer for 
 regularly accrued vacation or sick leave, and any other profit 
 from activity earned through effort or labor.  The income must 
 be in return for, or as a result of, legal activity.  

    Subd. 27.    Earned income tax credit.  "Earned income 
 tax credit" means the payment which can be obtained by a 
 qualified person from an employer or from the Internal Revenue 
 Service as provided by section 290.0671 and United States Code, 
 title 26, subtitle A, chapter 1, subchapter A, part 4, subpart 
 C, section 32. 

    Subd. 28. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 28a.    Encumbrance.  "Encumbrance" means a legal 
 claim against real or personal property that is payable upon the 
 sale of that property. 

    Subd. 28b.    Employable.  "Employable" means a person 
 is capable of performing existing positions in the local labor 
 market, regardless of the current availability of openings for 
 those positions. 

    Subd. 29.    Equity value.  "Equity value" means the 
 amount of equity in real or personal property owned by a person 
 and is determined by subtracting any outstanding encumbrances 
 from the fair market value. 

    Subd. 30.    Excluded time.  "Excluded time" has the 
 meaning given in section 256G.02. 

    Subd. 31.    Expedited issuance of the food stamp portion. 
  "Expedited issuance of the food stamp portion" means the 
 issuance of the food stamp portion to eligible assistance units 
 on the day of application as provided in section 393.07, 
 subdivision 10a. 

    Subd. 32.    Fair hearing or hearing.  "Fair hearing" or 
 "hearing" means the evidentiary hearing conducted by the 
 department appeals referee to resolve disputes as specified in 
 section 256J.40, or if not applicable, section 256.045. 

    Subd. 33.    Fair market value.  "Fair market value" 
 means the price that an item of a particular make, model, size, 
 material, or condition would sell for on the open market in the 
 particular geographic area. 

    Subd. 34.    Family.  "Family" includes: 

    (1) the following individuals who live together:  a minor 
 child or a group of minor children related to each other as 
 siblings, half siblings, stepsiblings, or adoptive siblings, 
 together with their natural, adoptive parents, stepparents, or 
 caregiver as defined in subdivision 11; and 

    (2) a pregnant woman with no other children. 

    Subd. 34a.    Family violence.  (a) "Family violence" 
 means the following, if committed against a family or household 
 member by a family or household member: 

    (1) physical harm, bodily injury, or assault; 

    (2) the infliction of fear of imminent physical harm, 
 bodily injury, or assault; or 

    (3) terroristic threats, within the meaning of section 
 609.713, subdivision 1; criminal sexual conduct, within the 
 meaning of section 609.342, 609.343, 609.344, 609.345, or 
 609.3451; or interference with an emergency call within the 
 meaning of section 609.78, subdivision 2. 

    (b) For the purposes of family violence, "family or 
 household member" means:  

    (1) spouses and former spouses; 

    (2) parents and children; 

    (3) persons related by blood; 

    (4) persons who are residing together or who have resided 
 together in the past; 

    (5) persons who have a child in common regardless of 
 whether they have been married or have lived together at any 
 time; 

    (6) a man and woman if the woman is pregnant and the man is 
 alleged to be the father, regardless of whether they have been 
 married or have lived together at anytime; and 

    (7) persons involved in a current or past significant 
 romantic or sexual relationship. 

    Subd. 34b.    Family violence waiver.  "Family violence 
 waiver" means a waiver of the 60-month time limit for victims of 
 family violence who meet the criteria in section 256J.545 and 
 are complying with an employment plan in section 256J.521, 
 subdivision 3. 

    Subd. 35.    Family wage level.  "Family wage level" 
 means 110 percent of the transitional standard as specified in 
 section 256J.24, subdivision 7. 

    Subd. 36.    Federal Insurance Contribution Act or FICA. 
  "Federal Insurance Contribution Act" or "FICA" means the 
 federal law under United States Code, title 26, subtitle C, 
 chapter 21, subchapter A, sections 3101 to 3126, that requires 
 withholding or direct payment from earned income. 

    Subd. 37.    Financial case record.  "Financial case 
 record" means an assistance unit's financial eligibility file. 

    Subd. 38.    Full-time student.  "Full-time student" 
 means a person who is enrolled in a graded or ungraded primary, 
 intermediate, secondary, GED preparatory, trade, technical, 
 vocational, or postsecondary school, and who meets the school's 
 standard for full-time attendance. 

    Subd. 39.    General educational development or GED.  
 "General educational development" or "GED" means the general 
 educational development certification issued by the commissioner 
 of education as an equivalent to a secondary school diploma 
 under Minnesota Rules, part 3500.3100, subpart 4. 

    Subd. 40.    Gross earned income.  "Gross earned income" 
 means earned income from employment before mandatory and 
 voluntary payroll deductions.  Gross earned income includes 
 salaries, wages, tips, gratuities, commissions, incentive 
 payments from work or training programs, payments made by an 
 employer for regularly accrued vacation or sick leave, and 
 profits from other activity earned by an individual's effort or 
 labor.  Gross earned income includes uniform and meal allowances 
 if federal income tax is deducted from the allowance.  Gross 
 earned income includes flexible work benefits received from an 
 employer if the employee has the option of receiving the benefit 
 or benefits in cash.  For self-employment, gross earned income 
 is the nonexcluded income minus expenses for the business.  

    Subd. 41.    Gross income.  "Gross income" is the sum of 
 gross earned income and unearned income. 

    Subd. 42.    Gross receipts.  "Gross receipts" means the 
 money received by a business before the expenses of the business 
 are deducted. 

    Subd. 43.    Half-time student.  "Half-time student" 
 means a person who is enrolled in a graded or ungraded primary, 
 intermediate, secondary, GED preparatory, trade, technical, 
 vocational, or postsecondary school, and who meets the school's 
 standard of half-time attendance. 

    Subd. 44.    Home.  "Home" means the primary place of 
 residence used by a person as the base for day-to-day living and 
 does not include locations used as mail drops. 

    Subd. 45.    Homestead.  "Homestead" means the home that 
 is owned by, and is the usual residence of, the assistance unit 
 together with the surrounding property which is not separated 
 from the home by intervening property owned by others.  Public 
 rights-of-way, such as roads which run through the surrounding 
 property and separate it from the home, do not affect the 
 exemption of the property.  Homestead includes an asset that is 
 not real property that the assistance unit uses as a home, such 
 as a vehicle. 

    Subd. 46.    Household.  "Household" means a group of 
 persons who live together. 

    Subd. 47.    Income.  "Income" means cash or in-kind 
 benefit, whether earned or unearned, received by or available to 
 an applicant or participant that is not an asset under section 
 256J.20. 

    Subd. 48.    Initial eligibility.  "Initial eligibility" 
 means the determination of eligibility for an MFIP applicant. 

    Subd. 49.    In-kind income.  "In-kind income" means 
 income, benefits, or payments which are provided in a form other 
 than money or liquid assets, including the forms of goods, 
 produce, services, privileges, or payments made on behalf of an 
 applicant or participant by a third party. 

    Subd. 50.    Inquiry.  "Inquiry" means a communication 
 to a county agency through mail, telephone, or in person, by 
 which a person or authorized representative requests information 
 about public assistance.  The county agency shall also treat as 
 an inquiry any communication in which a person requesting 
 assistance offers information about the person's family 
 circumstances that indicates that eligibility for public 
 assistance may exist. 

    Subd. 50a. Repealed, 1Sp2001 c 9 art 10 s 67 

    Subd. 51.    Legally available.  "Legally available" 
 means a person's right under the law to secure, possess, dispose 
 of, or control income or property. 

    Subd. 51a.    Legal custodian.  "Legal custodian" means 
 any person who is under a legal obligation to provide care for a 
 minor and who is in fact providing care for a minor.  For an 
 Indian child, "custodian" means any Indian person who has legal 
 custody of an Indian child under tribal law or custom, under 
 state law, or to whom temporary physical care, custody, and 
 control has been transferred by the parent of the child, as 
 provided in section 260.755, subdivision 10. 

    Subd. 51b.    Learning disabled.  "Learning disabled," 
 for purposes of an extension to the 60-month time limit under 
 section 256J.425, subdivision 3, clause (3), means the person 
 has a disorder in one or more of the psychological processes 
 involved in perceiving, understanding, or using concepts through 
 verbal language or nonverbal means.  Learning disabled does not 
 include learning problems that are primarily the result of 
 visual, hearing, or motor handicaps; mental retardation; 
 emotional disturbance; or due to environmental, cultural, or 
 economic disadvantage. 

    Subd. 52.    Low-income home energy assistance program or 
 LIHEAP.  "Low-income home energy assistance program" or 
 "LIHEAP" means the program authorized under United States Code, 
 title 42, chapter 94, subchapter II, sections 8621 to 8629, and 
 administered by the Minnesota Department of Commerce. 

    Subd. 53.    Lump sum.  "Lump sum" means nonrecurring 
 income that is not excluded in section 256J.21. 

    Subd. 54.    Medical assistance.  "Medical assistance" 
 means the program established under chapter 256B and Title XIX 
 of the Social Security Act. 

    Subd. 55.    MFIP household report form.  "MFIP 
 household report form" means a form prescribed by the 
 commissioner that a participant uses to report information to a 
 county agency about changes in income and other circumstances. 

    Subd. 55a.    MFIP standard of need.  "MFIP standard of 
 need" means the appropriate standard used to determine MFIP 
 benefit payments for the MFIP unit and applies to: 

    (1) the transitional standard, sections 256J.08, 
 subdivision 85, and 256J.24, subdivision 5; and 

    (2) the shared household standard, section 256J.24, 
 subdivision 9. 

    Subd. 56.    Migrant worker.  "Migrant worker" means a 
 person who travels away from home on a regular basis, usually 
 with a group of other laborers, to seek employment in an 
 agriculturally related activity. 

    Subd. 57.    Minnesota family investment program or MFIP. 
  "Minnesota family investment program" or "MFIP" means the 
 assistance program authorized in this chapter and chapter 256K. 

    Subd. 58.    Minnesota supplemental aid or MSA.  
 "Minnesota supplemental aid" or "MSA" means the program 
 established under sections 256D.33 to 256D.54. 

    Subd. 59.    Minor caregiver.  "Minor caregiver" means a 
 person who: 

    (1) is under the age of 18; 

    (2) has never been married or otherwise legally 
 emancipated; and 

    (3) is either the natural parent of a minor child living in 
 the same household or is eligible for assistance paid to a 
 pregnant woman. 

    Subd. 60.    Minor child.  "Minor child" means a child 
 who is living in the same home of a parent or other caregiver, 
 is not the parent of a child in the home, and is either less 
 than 18 years of age or is under the age of 19 years and is a 
 full-time student in a secondary school or pursuing a full-time 
 secondary level course of vocational or technical training 
 designed to fit students for gainful employment. 

    Subd. 61.    Monthly income test.  "Monthly income test" 
 means the test used to determine ongoing eligibility and the 
 assistance payment amount according to section 256J.21. 

    Subd. 61a.    Noncustodial parent.  "Noncustodial parent"
 means a minor child's parent who does not live in the same home 
 as the child.  

    Subd. 62.    Nonrecurring income.  "Nonrecurring income" 
 means a form of income which is received: 

    (1) only one time or is not of a continuous nature; or 

    (2) in a prospective payment month but is no longer 
 received in the corresponding retrospective payment month. 

    Subd. 63.    Overpayment.  "Overpayment" means the 
 portion of an assistance payment issued by the county agency 
 that is greater than the amount for which the assistance unit is 
 eligible. 

    Subd. 64.    Parent.  "Parent" means a child's 
 biological or adoptive parent who is legally obligated to 
 support that child. 

    Subd. 65.    Participant.  "Participant" means a person 
 who is currently receiving cash assistance or the food portion 
 available through MFIP.  A person who fails to withdraw or 
 access electronically any portion of the person's cash and food 
 assistance payment by the end of the payment month, who makes a 
 written request for closure before the first of a payment month 
 and repays cash and food assistance electronically issued for 
 that payment month within that payment month, or who returns any 
 uncashed assistance check and food coupons and withdraws from 
 the program is not a participant.  A person who withdraws a cash 
 or food assistance payment by electronic transfer or receives 
 and cashes an MFIP assistance check or food coupons and is 
 subsequently determined to be ineligible for assistance for that 
 period of time is a participant, regardless whether that 
 assistance is repaid.  The term "participant" includes the 
 caregiver relative and the minor child whose needs are included 
 in the assistance payment.  A person in an assistance unit who 
 does not receive a cash and food assistance payment because the 
 case has been suspended from MFIP is a participant.  A person 
 who receives cash payments under the diversionary work program 
 under section 256J.95 is a participant. 

    Subd. 65a.    Participation requirements of TANF.  
 "Participation requirements of TANF" means activities and hourly 
 requirements allowed under title IV-A of the federal Social 
 Security Act. 

    Subd. 66.    Payee.  "Payee" means a person to whom an 
 assistance payment is made payable. 

    Subd. 67.    Payment month.  "Payment month" means the 
 calendar month for which the assistance payment is paid. 

    Subd. 67a.    Person trained in domestic violence.  
 "Person trained in domestic violence" means an individual who 
 works for an organization that is designated by the Minnesota 
 Center for Crime Victims Services as providing services to 
 victims of domestic violence, or a county staff person who has 
 received similar specialized training, and includes any other 
 person or organization designated by a qualifying organization 
 under this section.  

    Subd. 68.    Personal property.  "Personal property" 
 means an item of value that is not real property, including the 
 value of a contract for deed held by a seller, assets held in 
 trust on behalf of members of an assistance unit, value of a 
 prepaid burial, savings account, value of stocks and bonds, and 
 value of retirement accounts. 

    Subd. 69.    Probable fraud.  "Probable fraud" means the 
 level of evidence that, if proven as fact, would establish that 
 assistance has been wrongfully obtained. 

    Subd. 70. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 71.    Prospective budgeting.  "Prospective 
 budgeting" means a method of determining the amount of the 
 assistance payment in which the budget month and payment month 
 are the same. 

    Subd. 72.    Protective payee.  "Protective payee" means 
 a person other than the caregiver of an assistance unit who 
 receives the monthly assistance payment on behalf of an 
 assistance unit and is responsible to provide for the basic 
 needs of the assistance unit to the extent of that payment. 

    Subd. 73.    Qualified noncitizen.  "Qualified 
 noncitizen" means a person: 

    (1) who was lawfully admitted for permanent residence 
 according to United States Code, title 8; 

    (2) who was admitted to the United States as a refugee 
 according to United States Code, title 8; section 1157; 

    (3) whose deportation is being withheld according to United 
 States Code, title 8, sections 1231(b)(3), 1253(h), and 
 1641(b)(5); 

    (4) who was paroled for a period of at least one year 
 according to United States Code, title 8, section 1182(d)(5); 

    (5) who was granted conditional entry according to United 
 State Code, title 8, section 1153(a)(7); 

    (6) who is a Cuban or Haitian entrant as defined in section 
 501(e) of the Refugee Education Assistance Act of 1980, United 
 States Code, title 8, section 1641(b)(7); 

    (7) who was granted asylum according to United States Code, 
 title 8, section 1158; 

    (8) who is a battered noncitizen according to United States 
 Code, title 8, section 1641(c); or 

    (9) who is a parent or child of a battered noncitizen 
 according to United States Code, title 8, section 1641(c). 

    Subd. 73a.    Qualified professional.  (a) For physical 
 illness, injury, or incapacity, a "qualified professional" means 
 a licensed physician, a physician's assistant, a nurse 
 practitioner, or a licensed chiropractor. 

    (b) For mental retardation and intelligence testing, a 
 "qualified professional" means an individual qualified by 
 training and experience to administer the tests necessary to 
 make determinations, such as tests of intellectual functioning, 
 assessments of adaptive behavior, adaptive skills, and 
 developmental functioning.  These professionals include licensed 
 psychologists, certified school psychologists, or certified 
 psychometrists working under the supervision of a licensed 
 psychologist. 

    (c) For learning disabilities, a "qualified professional" 
 means a licensed psychologist or school psychologist with 
 experience determining learning disabilities.  

    (d) For mental health, a "qualified professional" means a 
 licensed physician or a qualified mental health professional.  A 
 "qualified mental health professional" means: 

    (1) for children, in psychiatric nursing, a registered 
 nurse who is licensed under sections 148.171 to 148.285, and who 
 is certified as a clinical specialist in child and adolescent 
 psychiatric or mental health nursing by a national nurse 
 certification organization or who has a master's degree in 
 nursing or one of the behavioral sciences or related fields from 
 an accredited college or university or its equivalent, with at 
 least 4,000 hours of post-master's supervised experience in the 
 delivery of clinical services in the treatment of mental 
 illness; 

    (2) for adults, in psychiatric nursing, a registered nurse 
 who is licensed under sections 148.171 to 148.285, and who is 
 certified as a clinical specialist in adult psychiatric and 
 mental health nursing by a national nurse certification 
 organization or who has a master's degree in nursing or one of 
 the behavioral sciences or related fields from an accredited 
 college or university or its equivalent, with at least 4,000 
 hours of post-master's supervised experience in the delivery of 
 clinical services in the treatment of mental illness; 

    (3) in clinical social work, a person licensed as an 
 independent clinical social worker under chapter 148D, or a 
 person with a master's degree in social work from an accredited 
 college or university, with at least 4,000 hours of 
 post-master's supervised experience in the delivery of clinical 
 services in the treatment of mental illness; 

    (4) in psychology, an individual licensed by the Board of 
 Psychology under sections 148.88 to 148.98, who has stated to 
 the Board of Psychology competencies in the diagnosis and 
 treatment of mental illness; 

    (5) in psychiatry, a physician licensed under chapter 147 
 and certified by the American Board of Psychiatry and Neurology 
 or eligible for board certification in psychiatry; and 

    (6) in marriage and family therapy, the mental health 
 professional must be a marriage and family therapist licensed 
 under sections 148B.29 to 148B.39, with at least two years of 
 post-master's supervised experience in the delivery of clinical 
 services in the treatment of mental illness. 

    Subd. 74.    Real property.  "Real property" means land 
 and all buildings, structures, and improvements, or other 
 fixtures on the land, belonging or appertaining to the land, and 
 all mines, minerals, fossils, and trees on or under the land. 

    Subd. 75.    Reasonable compensation.  "Reasonable 
 compensation" means the value received in exchange for property 
 transferred to another owner that is consistent with fair market 
 value and equals or exceeds the seller's equity in the property, 
 reduced by costs incurred in the sale. 

    Subd. 76.    Recertification.  "Recertification" means 
 the periodic review of eligibility factors to determine an 
 assistance unit's continued eligibility. 

    Subd. 77.    Recoupment.  "Recoupment" means the action 
 of the county agency to reduce a family's monthly assistance 
 payment to recover overpayments caused by client or agency error 
 and overpayments received while an appeal is pending. 

    Subd. 78.    Recovery.  "Recovery" means actions taken 
 by a county agency to reclaim the value of overpayments through 
 voluntary repayment, recoupment from the assistance payment, 
 court action, revenue recapture, or federal tax refund offset 
 program (FTROP). 

    Subd. 79.    Recurring income.  "Recurring income" means 
 a form of income which is: 

    (1) received periodically, and may be received irregularly 
 when receipt can be anticipated even though the date of receipt 
 cannot be predicted; and 

    (2) from the same source or of the same type that is 
 received and budgeted in a prospective month and is received in 
 one or both of the first two retrospective months. 

    Subd. 80.    Unemployment benefits.  "Unemployment 
 benefits" means the insurance benefit paid to an unemployed 
 worker under sections 268.03 to 268.23. 

    Subd. 81.    Retrospective budgeting.  "Retrospective 
 budgeting" means a method of determining the amount of the 
 assistance payment in which the payment month is the second 
 month after the budget month. 

    Subd. 82.    Sanction.  "Sanction" means the reduction 
 of a family's assistance payment by a specified percentage of 
 the MFIP standard of need because:  a nonexempt participant 
 fails to comply with the requirements of sections 256J.515 to 
 256J.57; a parental caregiver fails without good cause to 
 cooperate with the child support enforcement requirements; or a 
 participant fails to comply with other requirements of this 
 chapter. 

    Subd. 82a.    Shared household standard.  "Shared 
 household standard" means the basic standard used when the 
 household includes an unrelated member.  The standard also 
 applies to a member disqualified under section 256J.425.  The 
 cash portion of the shared household standard is equal to 90 
 percent of the cash portion of the transitional standard.  The 
 cash portion of the shared household standard plus the food 
 portion equals the full shared household standard. 

    Subd. 82b.    Shelter costs.  "Shelter costs" means 
 rent, manufactured home lot rental costs, or monthly principal, 
 interest, insurance premiums, and property taxes due for 
 mortgages or contracts for deed. 

    Subd. 83.    Significant change.  "Significant change" 
 means a decline in gross income of the amount of the disregard 
 as defined in subdivision 24 or more from the income used to 
 determine the grant for the current month. 

    Subd. 84.    Supplemental Security Income or SSI.  
 "Supplemental Security Income" or "SSI" means the program 
 authorized under title XVI of the Social Security Act. 

    Subd. 84a.    SSI recipient.  "SSI recipient" means a 
 person who receives at least $1 in SSI benefits, or who is not 
 receiving an SSI benefit due to recoupment or a one-month 
 suspension by the Social Security Administration due to excess 
 income. 

    Subd. 85.    Transitional standard.  "Transitional 
 standard" means the basic standard for a family without earned 
 income and is a combination of the cash portion and food portion 
 as specified in section 256J.24, subdivision 5. 

    Subd. 86.    Unearned income.  "Unearned income" means 
 income received by a person that does not meet the definition of 
 earned income.  Unearned income includes income from a contract 
 for deed, interest, dividends, unemployment benefits, disability 
 insurance payments, veterans benefits, pension payments, return 
 on capital investment, insurance payments or settlements, 
 severance payments, child support and maintenance payments, and 
 payments for illness or disability whether the premium payments 
 are made in whole or in part by an employer or participant. 

    Subd. 86a.    Unrelated member.  "Unrelated member" 
 means an individual in the household who does not meet the 
 definition of an eligible caregiver. 

    Subd. 87.    Vendor.  "Vendor" means a provider of goods 
 or services. 

    Subd. 88.    Vendor payment.  "Vendor payment" means a 
 payment authorized by a county agency to a vendor. 

    Subd. 89.    Verification.  "Verification" means the 
 process a county agency uses to establish the accuracy or 
 completeness of information from an applicant, participant, 
 third party, or other source as that information relates to 
 program eligibility or an assistance payment. 

    Subd. 90.    Severe forms of trafficking in persons.  
 "Severe forms of trafficking in persons" means:  (1) sex 
 trafficking in which a commercial sex act is induced by force, 
 fraud, or coercion, or in which the person induced to perform 
 the act has not attained 18 years of age; or (2) the 
 recruitment, harboring, transportation, provision, or obtaining 
 of a person for labor or services through the use of force, 
 fraud, or coercion for the purposes of subjection to involuntary 
 servitude, peonage, debt bondage, or slavery. 

    HIST: 1986 c 444; 1997 c 85 art 1 s 4; 1998 c 398 art 5 s 55; 
 1998 c 407 art 6 s 20-34; 1999 c 107 s 66; 1999 c 139 art 4 s 2; 
 1999 c 245 art 6 s 6-13; 2000 c 343 s 4; 2000 c 488 art 10 s 7; 
 1Sp2001 c 9 art 10 s 6,7,66; 2002 c 379 art 1 s 113; 2003 c 130 
 s 12; 1Sp2003 c 14 art 1 s 11-24; 2004 c 206 s 37; 2004 c 288 
 art 4 s 29,30; 2005 c 147 art 1 s 68 

     256J.09 Applying for assistance. 

    Subdivision 1.    Where to apply.  To apply for 
 assistance a person must submit a signed application to the 
 county agency in the county where that person lives. 

    Subd. 2.    County agency responsibility to provide 
 information.  When a person inquires about assistance, a 
 county agency must: 

    (1) explain the eligibility requirements of, and how to 
 apply for any assistance for which the person may be eligible; 
 and 

    (2) offer the person brochures developed or approved by the 
 commissioner that describe how to apply for assistance. 

    Subd. 3.    Submitting the application form.  (a) A 
 county agency must offer, in person or by mail, the application 
 forms prescribed by the commissioner as soon as a person makes a 
 written or oral inquiry.  At that time, the county agency must: 

    (1) inform the person that assistance begins with the date 
 the signed application is received by the county agency or the 
 date all eligibility criteria are met, whichever is later; 

    (2) inform the person that any delay in submitting the 
 application will reduce the amount of assistance paid for the 
 month of application; 

    (3) inform a person that the person may submit the 
 application before an interview; 

    (4) explain the information that will be verified during 
 the application process by the county agency as provided in 
 section 256J.32; 

    (5) inform a person about the county agency's average 
 application processing time and explain how the application will 
 be processed under subdivision 5; 

    (6) explain how to contact the county agency if a person's 
 application information changes and how to withdraw the 
 application; 

    (7) inform a person that the next step in the application 
 process is an interview and what a person must do if the 
 application is approved including, but not limited to, attending 
 orientation under section 256J.45 and complying with employment 
 and training services requirements in sections 256J.515 to 
 256J.57; 

    (8) explain the child care and transportation services that 
 are available under paragraph (c) to enable caregivers to attend 
 the interview, screening, and orientation; and 

    (9) identify any language barriers and arrange for 
 translation assistance during appointments, including, but not 
 limited to, screening under subdivision 3a, orientation under 
 section 256J.45, and assessment under section 256J.521.  

    (b) Upon receipt of a signed application, the county agency 
 must stamp the date of receipt on the face of the application.  
 The county agency must process the application within the time 
 period required under subdivision 5.  An applicant may withdraw 
 the application at any time by giving written or oral notice to 
 the county agency.  The county agency must issue a written 
 notice confirming the withdrawal.  The notice must inform the 
 applicant of the county agency's understanding that the 
 applicant has withdrawn the application and no longer wants to 
 pursue it.  When, within ten days of the date of the agency's 
 notice, an applicant informs a county agency, in writing, that 
 the applicant does not wish to withdraw the application, the 
 county agency must reinstate the application and finish 
 processing the application. 

    (c) Upon a participant's request, the county agency must 
 arrange for transportation and child care or reimburse the 
 participant for transportation and child care expenses necessary 
 to enable participants to attend the screening under subdivision 
 3a and orientation under section 256J.45.  

    Subd. 3a.    Screening.  The county agency, or at county 
 option, the county's employment and training service provider as 
 defined in section 256J.49, must screen each applicant to 
 determine immediate needs and to determine if the applicant may 
 be eligible for another program that is not partially funded 
 through the federal temporary assistance to needy families block 
 grant under Title I of Public Law 104-193, including the 
 expedited issuance of food stamps under section 256J.28, 
 subdivision 1.  If the applicant appears eligible for another 
 program, including any program funded by the MFIP consolidated 
 fund, the county must make a referral to the appropriate program.

    Subd. 3b.    Interview to determine referrals and 
 services.  If the applicant is not diverted from applying for 
 MFIP, and if the applicant meets the MFIP eligibility 
 requirements, then a county agency must: 

    (1) identify an applicant who is under the age of 20 
 without a high school diploma or its equivalent and explain to 
 the applicant the assessment procedures and employment plan 
 requirements under section 256J.54; 

    (2) explain to the applicant the eligibility criteria in 
 section 256J.545 for the family violence waiver, and what an 
 applicant should do to develop an employment plan; 

    (3) explain that the activities and hourly requirements of 
 the employment plan may be adjusted to accommodate the personal 
 and family circumstances of applicants who meet the criteria in 
 section 256J.561, subdivision 2, paragraph (d), explain how a 
 person should report to the county agency any status changes, 
 and explain that an applicant who is not required to participate 
 in employment services under section 256J.561 may volunteer to 
 participate in employment and training services; 

    (4) for applicants who are not exempt from the requirement 
 to attend orientation, arrange for an orientation under section 
 256J.45 and an assessment under section 256J.521; 

    (5) inform an applicant who is not exempt from the 
 requirement to attend orientation that failure to attend the 
 orientation is considered an occurrence of noncompliance with 
 program requirements and will result in an imposition of a 
 sanction under section 256J.46; and 

    (6) explain how to contact the county agency if an 
 applicant has questions about compliance with program 
 requirements. 

    Subd. 4.    Verification of information on application.  
 A county agency must verify information provided by an applicant 
 as required in section 256J.32. 

    Subd. 5.    Processing applications.  Upon receiving an 
 application, a county agency must determine the applicant's 
 eligibility, approve or deny the application, inform the 
 applicant of its decision according to the notice provisions in 
 section 256J.31, and, if eligible, issue the assistance payment 
 to the applicant.  When a county agency is unable to process an 
 application within 30 days, the county agency must inform the 
 applicant of the reason for the delay in writing.  When an 
 applicant establishes the inability to provide required 
 verification within the 30-day processing period, the county 
 agency may not use the expiration of that period as the basis 
 for denial. 

    Subd. 6.    Invalid reason for delay.  A county agency 
 must not delay a decision on eligibility or delay issuing the 
 assistance payment except to establish state residence as 
 provided in section 256J.12 by: 

    (1) treating the 30-day processing period as a waiting 
 period; 

    (2) delaying approval or issuance of the assistance payment 
 pending the decision of the county board; or 

    (3) awaiting the result of a referral to a county agency in 
 another county when the county receiving the application does 
 not believe it is the county of financial responsibility. 

    Subd. 7.    Changes in residence during application.  
 The requirements in subdivisions 5 and 6 apply without regard to 
 the length of time that an applicant remains, or intends to 
 remain, a resident of the county in which the application is 
 made.  When an applicant leaves the county where application was 
 made but remains in the state, section 256J.75 applies and the 
 county agency may request additional information from the 
 applicant about changes in circumstances related to the move. 

    Subd. 8.    Additional applications.  Until a county 
 agency issues notice of approval or denial, additional 
 applications submitted by an applicant are void.  However, an 
 application for monthly assistance or other benefits funded 
 under section 256J.626 and an application for emergency general 
 assistance may exist concurrently.  More than one application 
 for monthly assistance or emergency general assistance may exist 
 concurrently when the county agency decisions on one or more 
 earlier applications have been appealed to the commissioner, and 
 the applicant asserts that a change in circumstances has 
 occurred that would allow eligibility.  A county agency must 
 require additional application forms or supplemental forms as 
 prescribed by the commissioner when a payee's name changes, or 
 when a caregiver requests the addition of another person to the 
 assistance unit.  

    Subd. 9.    Addendum to an existing application.  (a) An 
 addendum to an existing application must be used to add persons 
 to an assistance unit regardless of whether the persons being 
 added are required to be in the assistance unit.  When a person 
 is added by addendum to an assistance unit, eligibility for that 
 person begins on the first of the month the addendum was filed 
 except as provided in section 256J.74, subdivision 2, clause (1).

    (b) An overpayment must be determined when a change in 
 household composition is not reported within the deadlines in 
 section 256J.30, subdivision 9.  Any overpayment must be 
 calculated from the month of the change including the needs, 
 income, and assets of any individual who is required to be 
 included in the assistance unit under section 256J.24, 
 subdivision 2.  Individuals not included in the assistance unit 
 who are identified in section 256J.37, subdivisions 1 to 2, must 
 have their income and assets considered when determining the 
 amount of the overpayment. 

    Subd. 10.    Applicants who do not meet eligibility 
 requirements for MFIP or the diversionary work program.  When 
 an applicant is not eligible for MFIP or the diversionary work 
 program under section 256J.95 because the applicant does not 
 meet eligibility requirements, the county agency must determine 
 whether the applicant is eligible for food stamps, food support, 
 or health care programs.  The county must also inform applicants 
 about resources available through the county or other agencies 
 to meet short-term emergency needs. 

    HIST: 1997 c 85 art 1 s 5; 1998 c 407 art 6 s 35,36; 1Sp2001 c 
 9 art 10 s 8-12,66; 2002 c 379 art 1 s 113; 1Sp2003 c 14 art 1 s 
 25-30,106; 2004 c 288 art 4 s 31 

     256J.10 MFIP eligibility requirements. 

    To be eligible for MFIP, applicants must meet the general 
 eligibility requirements in sections 256J.11 to 256J.15, the 
 property limitations in section 256J.20, and the income 
 limitations in section 256J.21. 

    HIST: 1997 c 85 art 1 s 6; 1Sp2001 c 9 art 10 s 66 

     256J.11 Citizenship. 

    Subdivision 1.    General citizenship requirements.  (a) 
 To be eligible for MFIP, a member of the assistance unit must be 
 a citizen of the United States, a qualified noncitizen as 
 defined in section 256J.08, or a noncitizen who is otherwise 
 residing lawfully in the United States. 

    (b) A qualified noncitizen who entered the United States on 
 or after August 22, 1996, is eligible for MFIP.  However, TANF 
 dollars cannot be used to fund the MFIP benefits for an 
 individual under this paragraph for a period of five years after 
 the date of entry unless the qualified noncitizen meets one of 
 the following criteria: 

    (1) was admitted to the United States as a refugee under 
 United States Code, title 8, section 1157; 

    (2) was granted asylum under United States Code, title 8, 
 section 1158; 

    (3) was granted withholding of deportation under the United 
 States Code, title 8, section 1253(h); 

    (4) is a veteran of the United States armed forces with an 
 honorable discharge for a reason other than noncitizen status, 
 or is a spouse or unmarried minor dependent child of the same; 
 or 

    (5) is an individual on active duty in the United States 
 armed forces, other than for training, or is a spouse or 
 unmarried minor dependent child of the same. 

    (c) A person who is not a qualified noncitizen but who is 
 otherwise residing lawfully in the United States is eligible for 
 MFIP.  However, TANF dollars cannot be used to fund the MFIP 
 benefits for an individual under this paragraph. 

    (d) For purposes of this subdivision, a nonimmigrant in one 
 or more of the classes listed in United States Code, title 8, 
 section 1101(a)(15), or an undocumented immigrant who resides in 
 the United States without the approval or acquiescence of the 
 Immigration and Naturalization Service, is not eligible for MFIP.

    Subd. 2.    Noncitizens; food portion.  State dollars 
 shall fund the food portion of a noncitizen's MFIP benefits when 
 federal food stamp dollars cannot be used to fund those 
 benefits.  The assistance provided under this subdivision, which 
 is designated as a supplement to replace lost benefits under the 
 federal food stamp program, must be disregarded as income in all 
 programs that do not count food stamps or food support as income 
 where the commissioner has the authority to make the income 
 disregard determination for the program. 

    Subd. 3.    Benefits funded with state money.  Legal 
 adult noncitizens who have resided in the country for four years 
 or more as a lawful permanent resident, whose benefits are 
 funded entirely with state money, and who are under 70 years of 
 age, must, as a condition of eligibility: 

    (1) be enrolled in a literacy class, English as a second 
 language class, or a citizen class; 

    (2) be applying for admission to a literacy class, English 
 as a second language class, and is on a waiting list; 

    (3) be in the process of applying for a waiver from the 
 Immigration and Naturalization Service of the English language 
 or civics requirements of the citizenship test; 

    (4) have submitted an application for citizenship to the 
 Immigration and Naturalization Service and is waiting for a 
 testing date or a subsequent swearing in ceremony; or 

    (5) have been denied citizenship due to a failure to pass 
 the test after two attempts or because of an inability to 
 understand the rights and responsibilities of becoming a United 
 States citizen, as documented by the Immigration and 
 Naturalization Service or the county. 

    If the county social service agency determines that a legal 
 noncitizen subject to the requirements of this subdivision will 
 require more than one year of English language training, then 
 the requirements of clause (1) or (2) shall be imposed after the 
 legal noncitizen has resided in the country for three years.  
 Individuals who reside in a facility licensed under chapter 
 144A, 144D, 245A, or 256I are exempt from the requirements of 
 this subdivision. 

    HIST: 1997 c 85 art 1 s 7; 1997 c 203 art 12 s 7; 3Sp1997 c 1 
 s 1; 1998 c 407 art 6 s 37; 1999 c 159 s 78,79; 1999 c 245 art 6 
 s 14,15; 1Sp2001 c 9 art 10 s 66; 2002 c 379 art 1 s 114; 
 1Sp2003 c 14 art 1 s 106 

     256J.12 Minnesota residence. 

    Subdivision 1.    Simple residency.  To be eligible for 
 MFIP, an assistance unit must have established residency in this 
 state which means the assistance unit is present in the state 
 and intends to remain here.  A person who lives in this state 
 and who entered this state with a job commitment or to seek 
 employment in this state, whether or not that person is 
 currently employed, meets the criteria in this subdivision.  

    Subd. 1a.    30-day residency requirement.  An 
 assistance unit is considered to have established residency in 
 this state only when a child or caregiver has resided in this 
 state for at least 30 consecutive days with the intention of 
 making the person's home here and not for any temporary 
 purpose.  The birth of a child in Minnesota to a member of the 
 assistance unit does not automatically establish the residency 
 in this state under this subdivision of the other members of the 
 assistance unit.  Time spent in a shelter for battered women 
 shall count toward satisfying the 30-day residency requirement. 

    Subd. 2.    Exceptions.  (a) A county shall waive the 
 30-day residency requirement where unusual hardship would result 
 from denial of assistance. 

    (b) For purposes of this section, unusual hardship means an 
 assistance unit: 

    (1) is without alternative shelter; or 

    (2) is without available resources for food. 

    (c) For purposes of this subdivision, the following 
 definitions apply (1) "metropolitan statistical area" is as 
 defined by the U.S. Census Bureau; (2) "alternative shelter" 
 includes any shelter that is located within the metropolitan 
 statistical area containing the county and for which the family 
 is eligible, provided the assistance unit does not have to 
 travel more than 20 miles to reach the shelter and has access to 
 transportation to the shelter.  Clause (2) does not apply to 
 counties in the Minneapolis-St. Paul metropolitan statistical 
 area. 

    (d) Applicants are considered to meet the residency 
 requirement under subdivision 1a if they once resided in 
 Minnesota and: 

    (1) joined the United States armed services, returned to 
 Minnesota within 30 days of leaving the armed services, and 
 intend to remain in Minnesota; or 

    (2) left to attend school in another state, paid 
 nonresident tuition or Minnesota tuition rates under a 
 reciprocity agreement, and returned to Minnesota within 30 days 
 of graduation with the intent to remain in Minnesota. 

    (e) The 30-day residence requirement is met when: 

    (1) a minor child or a minor caregiver moves from another 
 state to the residence of a relative caregiver; and 

    (2) the relative caregiver has resided in Minnesota for at 
 least 30 consecutive days and:  

    (i) the minor caregiver applies for and receives MFIP; or 

    (ii) the relative caregiver applies for assistance for the 
 minor child but does not choose to be a member of the MFIP 
 assistance unit. 

    Subd. 2a.    Migrant workers.  Migrant workers, as 
 defined in section 256J.08, and their immediate families are 
 exempt from the requirements of subdivisions 1 and 1a, provided 
 the migrant worker provides verification that the migrant family 
 worked in this state within the last 12 months and earned at 
 least $1,000 in gross wages during the time the migrant worker 
 worked in this state. 

    Subd. 3. Repealed, 1Sp2001 c 9 art 10 s 67 

    Subd. 4.    Severability clause.  If any subdivision in 
 this section is enjoined from implementation or found 
 unconstitutional by any court of competent jurisdiction, the 
 remaining subdivisions shall remain valid and shall be given 
 full effect. 

    HIST: 1997 c 85 art 1 s 8; 1997 c 203 art 12 s 8; 1998 c 407 
 art 6 s 38; 1999 c 159 s 80; 1999 c 245 art 6 s 16,17 

     256J.13 Minor child in assistance unit; physical 
  presence. 

    Subdivision 1.    Minor child or pregnant woman.  The 
 assistance unit must include at least one minor child or a 
 pregnant woman.  If a minor child is a recipient of Supplemental 
 Security Income or Minnesota supplemental aid, the assistance 
 unit is eligible for MFIP, but the needs of the minor child 
 receiving Supplemental Security Income or Minnesota supplemental 
 aid must not be taken into account when the county agency 
 determines the amount of the assistance payment to be paid to 
 the assistance unit. 

    Subd. 2.    Physical presence.  A minor child and a 
 caregiver must live together except as provided in the following 
 paragraphs. 

    (a) The physical presence requirement is met when a minor 
 child is required to live away from the caregiver's home to meet 
 the need for educational curricula that cannot be met by, but is 
 approved by, the local public school district, the home is 
 maintained for the minor child's return during periodic school 
 vacations, and the caregiver continues to maintain 
 responsibility for the support and care of the minor child. 

    (b) The physical presence requirement is met when an 
 applicant caregiver or applicant minor child is away from the 
 home due to illness or hospitalization, when the home is 
 maintained for the return of the absent family member, the 
 absence is not expected to last more than six months beyond the 
 month of departure, and the conditions of clause (1), (2), or 
 (3) apply: 

    (1) when the minor child and caregiver lived together 
 immediately prior to the absence, the caregiver continues to 
 maintain responsibility for the support and care of the minor 
 child, and the absence is reported at the time of application; 

    (2) when the pregnant mother is hospitalized or out of the 
 home due to the pregnancy; or 

    (3) when the newborn child and mother are hospitalized at 
 the time of birth. 

    (c) The absence of a caregiver or minor child does not 
 affect eligibility for the month of departure when the caregiver 
 or minor child received assistance for that month and lived 
 together immediately prior to the absence.  Eligibility also 
 exists in the following month when the absence ends on or before 
 the tenth day of that month.  A temporary absence of a caregiver 
 or a minor child which continues beyond the month of departure 
 must not affect eligibility when the home is maintained for the 
 return of the absent family member, the caregiver continues to 
 maintain responsibility for the support and care of the minor 
 child, and one of clauses (1) to (7) applies: 

    (1) a participant caregiver or participant child is absent 
 due to illness or hospitalization, and the absence is expected 
 to last no more than six months beyond the month of departure; 

    (2) a participant child is out of the home due to placement 
 in foster care as defined in sections 260B.007, subdivision 7, 
 and 260C.007, subdivision 18, when the placement will not be 
 paid under title IV-E of the Social Security Act, and when the 
 absence is expected to last no more than six months beyond the 
 month of departure; 

    (3) a participant minor child is out of the home for a 
 vacation, the vacation is not with an absent parent, and the 
 absence is expected to last no more than two months beyond the 
 month of departure; 

    (4) a participant minor child is out of the home due to a 
 visit or vacation with an absent parent, the home of the minor 
 child remains with the caregiver, the absence meets the 
 conditions of this paragraph and the absence is expected to last 
 no more than two months beyond the month of departure; 

    (5) a participant caregiver is out of the home due to a 
 death or illness of a relative, incarceration, training, or 
 employment search and suitable arrangements have been made for 
 the care of the minor child, or a participant minor child is out 
 of the home due to incarceration, and the absence is expected to 
 last no more than two months beyond the month of departure; 

    (6) a participant caregiver and a participant minor child 
 are both absent from Minnesota due to a situation described in 
 clause (5), except for incarceration, and the absence is 
 expected to last no more than one month beyond the month of the 
 departure; or 

    (7) a participant minor child has run away from home, and 
 another person has not made application for that minor child, 
 assistance must continue for no more than two months following 
 the month of departure. 

    HIST: 1997 c 85 art 1 s 9; 1999 c 139 art 4 s 2; 2001 c 178 
 art 1 s 44; 1Sp2001 c 9 art 10 s 66; 2005 c 98 art 1 s 11 

     256J.14 Eligibility for parenting or pregnant minors. 

    (a) The definitions in this paragraph only apply to this 
 subdivision. 

    (1) "Household of a parent, legal guardian, or other adult 
 relative" means the place of residence of: 

    (i) a natural or adoptive parent; 

    (ii) a legal guardian according to appointment or 
 acceptance under sections 260C.325 or 524.5-201 to 524.5-317, 
 and related laws; 

    (iii) a caregiver as defined in section 256J.08, 
 subdivision 11; or 

    (iv) an appropriate adult relative designated by a county 
 agency. 

    (2) "Adult-supervised supportive living arrangement" means 
 a private family setting which assumes responsibility for the 
 care and control of the minor parent and minor child, or other 
 living arrangement, not including a public institution, licensed 
 by the commissioner of human services which ensures that the 
 minor parent receives adult supervision and supportive services, 
 such as counseling, guidance, independent living skills 
 training, or supervision. 

    (b) A minor parent and the minor child who is in the care 
 of the minor parent must reside in the household of a parent, 
 legal guardian, other adult relative, or in an adult-supervised 
 supportive living arrangement in order to receive MFIP unless: 

    (1) the minor parent has no living parent, other adult 
 relative, or legal guardian whose whereabouts is known; 

    (2) no living parent, other adult relative, or legal 
 guardian of the minor parent allows the minor parent to live in 
 the parent's, other adult relative's, or legal guardian's home; 

    (3) the minor parent lived apart from the minor parent's 
 own parent or legal guardian for a period of at least one year 
 before either the birth of the minor child or the minor parent's 
 application for MFIP; 

    (4) the physical or emotional health or safety of the minor 
 parent or minor child would be jeopardized if the minor parent 
 and the minor child resided in the same residence with the minor 
 parent's parent, other adult relative, or legal guardian; or 

    (5) an adult supervised supportive living arrangement is 
 not available for the minor parent and child in the county in 
 which the minor parent and child currently reside.  If an adult 
 supervised supportive living arrangement becomes available 
 within the county, the minor parent and child must reside in 
 that arrangement. 

    (c) The county agency shall inform minor applicants both 
 orally and in writing about the eligibility requirements, their 
 rights and obligations under the MFIP program, and any other 
 applicable orientation information.  The county must advise the 
 minor of the possible exemptions under section 256J.54, 
 subdivision 5, and specifically ask whether one or more of these 
 exemptions is applicable.  If the minor alleges one or more of 
 these exemptions, then the county must assist the minor in 
 obtaining the necessary verifications to determine whether or 
 not these exemptions apply. 

    (d) If the county worker has reason to suspect that the 
 physical or emotional health or safety of the minor parent or 
 minor child would be jeopardized if they resided with the minor 
 parent's parent, other adult relative, or legal guardian, then 
 the county worker must make a referral to child protective 
 services to determine if paragraph (b), clause (4), applies.  A 
 new determination by the county worker is not necessary if one 
 has been made within the last six months, unless there has been 
 a significant change in circumstances which justifies a new 
 referral and determination. 

    (e) If a minor parent is not living with a parent, legal 
 guardian, or other adult relative due to paragraph (b), clause 
 (1), (2), or (4), the minor parent must reside, when possible, 
 in a living arrangement that meets the standards of paragraph 
 (a), clause (2). 

    (f) Regardless of living arrangement, MFIP must be paid, 
 when possible, in the form of a protective payment on behalf of 
 the minor parent and minor child according to section 256J.39, 
 subdivisions 2 to 4. 

    HIST: 1997 c 85 art 1 s 10; 1998 c 407 art 6 s 39; 1999 c 139 
 art 4 s 2; 1999 c 245 art 6 s 18; 1Sp2003 c 14 art 1 s 31; 2004 
 c 146 art 3 s 26 

     256J.15 Other eligibility conditions. 

    Subdivision 1.    Eligibility when there is shared, court 
 ordered, and other custody arrangements.  The language of a 
 court order that specifies joint legal or physical custody does 
 not preclude a determination that a parent is absent.  Absence 
 must be determined based on the actual facts of the absence 
 according to paragraphs (a) to (c).  

    (a) When a minor child spends time in each of the parents' 
 homes within a payment month, the minor child's home shall be 
 considered the home in which the majority of the minor child's 
 time is spent.  When this time is exactly equal within a payment 
 month, or when the parents alternately live in the minor child's 
 home within a payment month, the minor child's home shall be 
 with that parent who is applying for MFIP, unless the minor 
 child's needs for the full payment month have already been met 
 through the provision of assistance to the other parent for that 
 month.  

    (b) When the physical custody of a minor child alternates 
 between parents for periods of at least one payment month, each 
 parent shall be eligible for assistance for any full payment 
 months the minor child's home is with that parent, except under 
 the conditions in paragraph (c).  

    (c) When a minor child's home is with one parent for the 
 majority of time in each month for at least nine consecutive 
 calendar months, and that minor child visits or vacations with 
 the other parent under section 256J.13, the minor child's home 
 remains with the first parent even when the stay with the second 
 parent is for all or the majority of the months in the period of 
 the temporary absence. 

    Subd. 2.    Eligibility during labor disputes.  To 
 receive assistance when a member of an assistance unit is on 
 strike, or when an individual identified under section 256J.37, 
 subdivisions 1 to 2, whose income and assets must be considered 
 when determining the unit's eligibility is on strike, the 
 assistance unit must have been receiving MFIP or have been 
 eligible for MFIP on the day before the strike. 

    The county agency must count the striker's prestrike 
 earnings as current earnings.  A significant change cannot be 
 invoked when a member of an assistance unit, or an individual 
 identified under section 256J.37, subdivisions 1 to 2, is on 
 strike.  A member of an assistance unit, or an individual 
 identified under section 256J.37, subdivisions 1 to 2, is not 
 considered a striker when that person is not in the bargaining 
 unit that voted for the strike and does not cross the picket 
 line for fear of personal injury. 

    HIST: 1997 c 85 art 1 s 11; 1998 c 407 art 6 s 40; 1Sp2001 c 9 
 art 10 s 66 

     256J.20 Property limitations. 

    Subdivision 1.    Property ownership provisions.  The 
 county agency must apply paragraphs (a) to (d) to real and 
 personal property.  The county agency must use the equity value 
 of legally available real and personal property, except property 
 excluded in subdivisions 2 and 3, to determine whether an 
 applicant or participant is eligible for assistance. 

    (a) When real or personal property is jointly owned by two 
 or more persons, the county agency shall assume that each person 
 owns an equal share, except that either person owns the entire 
 sum of a joint personal checking or savings account.  When an 
 applicant or participant documents greater or lesser ownership, 
 the county agency must use that greater or lesser share to 
 determine the equity value held by the applicant or 
 participant.  Other types of ownership must be evaluated 
 according to law. 

    (b) Real or personal property owned by the applicant or 
 participant must be presumed legally available to the applicant 
 or participant unless the applicant or participant documents 
 that the property is not legally available to the applicant or 
 participant.  When real or personal property is not legally 
 available, its equity value must not be applied against the 
 limits of subdivisions 2 and 3. 

    (c) An applicant must disclose whether the applicant has 
 transferred real or personal property valued in excess of the 
 property limits in subdivisions 2 and 3 for which reasonable 
 compensation was not received within one year prior to 
 application.  A participant must disclose all transfers of 
 property valued in excess of these limits, according to the 
 reporting requirements in section 256J.30, subdivision 9.  When 
 a transfer of real or personal property without reasonable 
 compensation has occurred: 

    (1) the person who transferred the property must provide 
 the property's description, information needed to determine the 
 property's equity value, the names of the persons who received 
 the property, and the circumstances of and reasons for the 
 transfer; and 

    (2) when the transferred property can be reasonably 
 reacquired, or when reasonable compensation can be secured, the 
 property is presumed legally available to the applicant or 
 participant. 

    (d) A participant may build the equity value of real and 
 personal property to the limits in subdivisions 2 and 3. 

    Subd. 2.    Real property limitations.  Ownership of 
 real property by an applicant or participant is subject to the 
 limitations in paragraphs (a) and (b). 

    (a) A county agency shall exclude the homestead of an 
 applicant or participant according to clauses (1) to (5): 

    (1) an applicant or participant who is purchasing real 
 property through a contract for deed and using that property as 
 a home is considered the owner of real property; 

    (2) the total amount of land that can be excluded under 
 this subdivision is limited to surrounding property which is not 
 separated from the home by intervening property owned by 
 others.  Additional property must be assessed as to its legal 
 and actual availability according to subdivision 1; 

    (3) when real property that has been used as a home by a 
 participant is sold, the county agency must treat the cash 
 proceeds from the sale as excluded property for six months when 
 the participant intends to reinvest the proceeds in another home 
 and maintains those proceeds, unused for other purposes, in a 
 separate account; 

    (4) when the homestead is jointly owned, but the client 
 does not reside in it because of legal separation, pending 
 divorce, or battering or abuse by the spouse or partner, the 
 homestead is excluded; and 

    (5) the homestead shall continue to be excluded if it is 
 temporarily unoccupied due to employment, illness, or as the 
 result of compliance with a county-approved employability plan.  
 The education, training, or job search must be within the state, 
 but can be outside the immediate geographic area.  A homestead 
 temporarily unoccupied because it is not habitable due to a 
 casualty or natural disaster is excluded.  The homestead is 
 excluded during periods only if the client intends to return to 
 it. 

    (b) The equity value of real property that is not excluded 
 under paragraph (a) and which is legally available must be 
 applied against the limits in subdivision 3.  When the equity 
 value of the real property exceeds the limits under subdivision 
 3, the applicant or participant may qualify to receive 
 assistance when the applicant or participant continues to make a 
 good faith effort to sell the property and signs a legally 
 binding agreement to repay the amount of assistance, less child 
 support collected by the agency.  Repayment must be made within 
 five working days after the property is sold.  Repayment to the 
 county agency must be in the amount of assistance received or 
 the proceeds of the sale, whichever is less. 

    Subd. 3.    Other property limitations.  To be eligible 
 for MFIP, the equity value of all nonexcluded real and personal 
 property of the assistance unit must not exceed $2,000 for 
 applicants and $5,000 for ongoing participants.  The value of 
 assets in clauses (1) to (19) must be excluded when determining 
 the equity value of real and personal property: 

    (1) a licensed vehicle up to a loan value of less than or 
 equal to $7,500.  The county agency shall apply any excess loan 
 value as if it were equity value to the asset limit described in 
 this section.  If the assistance unit owns more than one 
 licensed vehicle, the county agency shall determine the vehicle 
 with the highest loan value and count only the loan value over 
 $7,500, excluding:  (i) the value of one vehicle per physically 
 disabled person when the vehicle is needed to transport the 
 disabled unit member; this exclusion does not apply to mentally 
 disabled people; (ii) the value of special equipment for a 
 handicapped member of the assistance unit; and (iii) any vehicle 
 used for long-distance travel, other than daily commuting, for 
 the employment of a unit member. 

    The county agency shall count the loan value of all other 
 vehicles and apply this amount as if it were equity value to the 
 asset limit described in this section.  To establish the loan 
 value of vehicles, a county agency must use the N.A.D.A. 
 Official Used Car Guide, Midwest Edition, for newer model cars.  
 When a vehicle is not listed in the guidebook, or when the 
 applicant or participant disputes the loan value listed in the 
 guidebook as unreasonable given the condition of the particular 
 vehicle, the county agency may require the applicant or 
 participant document the loan value by securing a written 
 statement from a motor vehicle dealer licensed under section 
 168.27, stating the amount that the dealer would pay to purchase 
 the vehicle.  The county agency shall reimburse the applicant or 
 participant for the cost of a written statement that documents a 
 lower loan value; 

    (2) the value of life insurance policies for members of the 
 assistance unit; 

    (3) one burial plot per member of an assistance unit; 

    (4) the value of personal property needed to produce earned 
 income, including tools, implements, farm animals, inventory, 
 business loans, business checking and savings accounts used at 
 least annually and used exclusively for the operation of a 
 self-employment business, and any motor vehicles if at least 50 
 percent of the vehicle's use is to produce income and if the 
 vehicles are essential for the self-employment business; 

    (5) the value of personal property not otherwise specified 
 which is commonly used by household members in day-to-day living 
 such as clothing, necessary household furniture, equipment, and 
 other basic maintenance items essential for daily living; 

    (6) the value of real and personal property owned by a 
 recipient of Supplemental Security Income or Minnesota 
 supplemental aid; 

    (7) the value of corrective payments, but only for the 
 month in which the payment is received and for the following 
 month; 

    (8) a mobile home or other vehicle used by an applicant or 
 participant as the applicant's or participant's home; 

    (9) money in a separate escrow account that is needed to 
 pay real estate taxes or insurance and that is used for this 
 purpose; 

    (10) money held in escrow to cover employee FICA, employee 
 tax withholding, sales tax withholding, employee worker 
 compensation, business insurance, property rental, property 
 taxes, and other costs that are paid at least annually, but less 
 often than monthly; 

    (11) monthly assistance payments for the current month's or 
 short-term emergency needs under section 256J.626, subdivision 
 2; 

    (12) the value of school loans, grants, or scholarships for 
 the period they are intended to cover; 

    (13) payments listed in section 256J.21, subdivision 2, 
 clause (9), which are held in escrow for a period not to exceed 
 three months to replace or repair personal or real property; 

    (14) income received in a budget month through the end of 
 the payment month; 

    (15) savings from earned income of a minor child or a minor 
 parent that are set aside in a separate account designated 
 specifically for future education or employment costs; 

    (16) the federal earned income credit, Minnesota working 
 family credit, state and federal income tax refunds, state 
 homeowners and renters credits under chapter 290A, property tax 
 rebates and other federal or state tax rebates in the month 
 received and the following month; 

    (17) payments excluded under federal law as long as those 
 payments are held in a separate account from any nonexcluded 
 funds; 

    (18) the assets of children ineligible to receive MFIP 
 benefits because foster care or adoption assistance payments are 
 made on their behalf; and 

    (19) the assets of persons whose income is excluded under 
 section 256J.21, subdivision 2, clause (43). 

    HIST: 1997 c 85 art 1 s 12; 1997 c 203 art 12 s 9; 1998 c 407 
 art 6 s 41,42; 1999 c 245 art 6 s 19; 1Sp2001 c 2 s 144; 1Sp2003 
 c 14 art 1 s 32 

     256J.21 Income limitations. 

    Subdivision 1.    Income inclusions.  To determine MFIP 
 eligibility, the county agency must evaluate income received by 
 members of an assistance unit, or by other persons whose income 
 is considered available to the assistance unit, and only count 
 income that is available to the member of the assistance unit.  
 Income is available if the individual has legal access to the 
 income.  All payments, unless specifically excluded in 
 subdivision 2, must be counted as income.  The county agency 
 shall verify the income of all MFIP recipients and applicants. 

    Subd. 2.    Income exclusions.  The following must be 
 excluded in determining a family's available income: 

    (1) payments for basic care, difficulty of care, and 
 clothing allowances received for providing family foster care to 
 children or adults under Minnesota Rules, parts 9555.5050 to 
 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments 
 received and used for care and maintenance of a third-party 
 beneficiary who is not a household member; 

    (2) reimbursements for employment training received through 
 the Workforce Investment Act of 1998, United States Code, title 
 20, chapter 73, section 9201; 

    (3) reimbursement for out-of-pocket expenses incurred while 
 performing volunteer services, jury duty, employment, or 
 informal carpooling arrangements directly related to employment; 

    (4) all educational assistance, except the county agency 
 must count graduate student teaching assistantships, 
 fellowships, and other similar paid work as earned income and, 
 after allowing deductions for any unmet and necessary 
 educational expenses, shall count scholarships or grants awarded 
 to graduate students that do not require teaching or research as 
 unearned income; 

    (5) loans, regardless of purpose, from public or private 
 lending institutions, governmental lending institutions, or 
 governmental agencies; 

    (6) loans from private individuals, regardless of purpose, 
 provided an applicant or participant documents that the lender 
 expects repayment; 

    (7)(i) state income tax refunds; and 

    (ii) federal income tax refunds; 

    (8)(i) federal earned income credits; 

    (ii) Minnesota working family credits; 

    (iii) state homeowners and renters credits under chapter 
 290A; and 

    (iv) federal or state tax rebates; 

    (9) funds received for reimbursement, replacement, or 
 rebate of personal or real property when these payments are made 
 by public agencies, awarded by a court, solicited through public 
 appeal, or made as a grant by a federal agency, state or local 
 government, or disaster assistance organizations, subsequent to 
 a presidential declaration of disaster; 

    (10) the portion of an insurance settlement that is used to 
 pay medical, funeral, and burial expenses, or to repair or 
 replace insured property; 

    (11) reimbursements for medical expenses that cannot be 
 paid by medical assistance; 

    (12) payments by a vocational rehabilitation program 
 administered by the state under chapter 268A, except those 
 payments that are for current living expenses; 

    (13) in-kind income, including any payments directly made 
 by a third party to a provider of goods and services; 

    (14) assistance payments to correct underpayments, but only 
 for the month in which the payment is received; 

    (15) payments for short-term emergency needs under section 
 256J.626, subdivision 2; 

    (16) funeral and cemetery payments as provided by section 
 256.935; 

    (17) nonrecurring cash gifts of $30 or less, not exceeding 
 $30 per participant in a calendar month; 

    (18) any form of energy assistance payment made through 
 Public Law 97-35, Low-Income Home Energy Assistance Act of 1981, 
 payments made directly to energy providers by other public and 
 private agencies, and any form of credit or rebate payment 
 issued by energy providers; 

    (19) Supplemental Security Income (SSI), including 
 retroactive SSI payments and other income of an SSI recipient, 
 except as described in section 256J.37, subdivision 3b; 

    (20) Minnesota supplemental aid, including retroactive 
 payments; 

    (21) proceeds from the sale of real or personal property; 

    (22) state adoption assistance payments under section 
 259.67, and up to an equal amount of county adoption assistance 
 payments; 

    (23) state-funded family subsidy program payments made 
 under section 252.32 to help families care for children with 
 mental retardation or related conditions, consumer support grant 
 funds under section 256.476, and resources and services for a 
 disabled household member under one of the home and 
 community-based waiver services programs under chapter 256B; 

    (24) interest payments and dividends from property that is 
 not excluded from and that does not exceed the asset limit; 

    (25) rent rebates; 

    (26) income earned by a minor caregiver, minor child 
 through age 6, or a minor child who is at least a half-time 
 student in an approved elementary or secondary education 
 program; 

    (27) income earned by a caregiver under age 20 who is at 
 least a half-time student in an approved elementary or secondary 
 education program; 

    (28) MFIP child care payments under section 119B.05; 

    (29) all other payments made through MFIP to support a 
 caregiver's pursuit of greater economic stability; 

    (30) income a participant receives related to shared living 
 expenses; 

    (31) reverse mortgages; 

    (32) benefits provided by the Child Nutrition Act of 1966, 
 United States Code, title 42, chapter 13A, sections 1771 to 
 1790; 

    (33) benefits provided by the women, infants, and children 
 (WIC) nutrition program, United States Code, title 42, chapter 
 13A, section 1786; 

    (34) benefits from the National School Lunch Act, United 
 States Code, title 42, chapter 13, sections 1751 to 1769e; 

    (35) relocation assistance for displaced persons under the 
 Uniform Relocation Assistance and Real Property Acquisition 
 Policies Act of 1970, United States Code, title 42, chapter 61, 
 subchapter II, section 4636, or the National Housing Act, United 
 States Code, title 12, chapter 13, sections 1701 to 1750jj; 

    (36) benefits from the Trade Act of 1974, United States 
 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 

    (37) war reparations payments to Japanese Americans and 
 Aleuts under United States Code, title 50, sections 1989 to 
 1989d; 

    (38) payments to veterans or their dependents as a result 
 of legal settlements regarding Agent Orange or other chemical 
 exposure under Public Law 101-239, section 10405, paragraph 
 (a)(2)(E); 

    (39) income that is otherwise specifically excluded from 
 MFIP consideration in federal law, state law, or federal 
 regulation; 

    (40) security and utility deposit refunds; 

    (41) American Indian tribal land settlements excluded under 
 Public Laws 98-123, 98-124, and 99-377 to the Mississippi Band 
 Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
 reservations and payments to members of the White Earth Band, 
 under United States Code, title 25, chapter 9, section 331, and 
 chapter 16, section 1407; 

    (42) all income of the minor parent's parents and 
 stepparents when determining the grant for the minor parent in 
 households that include a minor parent living with parents or 
 stepparents on MFIP with other children; 

    (43) income of the minor parent's parents and stepparents 
 equal to 200 percent of the federal poverty guideline for a 
 family size not including the minor parent and the minor 
 parent's child in households that include a minor parent living 
 with parents or stepparents not on MFIP when determining the 
 grant for the minor parent.  The remainder of income is deemed 
 as specified in section 256J.37, subdivision 1b; 

    (44) payments made to children eligible for relative 
 custody assistance under section 257.85; 

    (45) vendor payments for goods and services made on behalf 
 of a client unless the client has the option of receiving the 
 payment in cash; and 

    (46) the principal portion of a contract for deed payment. 

    Subd. 3.    Initial income test.  The county agency 
 shall determine initial eligibility by considering all earned 
 and unearned income that is not excluded under subdivision 2.  
 To be eligible for MFIP, the assistance unit's countable income 
 minus the disregards in paragraphs (a) and (b) must be below the 
 transitional standard of assistance according to section 256J.24 
 for that size assistance unit. 

    (a) The initial eligibility determination must disregard 
 the following items: 

    (1) the employment disregard is 18 percent of the gross 
 earned income whether or not the member is working full time or 
 part time; 

    (2) dependent care costs must be deducted from gross earned 
 income for the actual amount paid for dependent care up to a 
 maximum of $200 per month for each child less than two years of 
 age, and $175 per month for each child two years of age and 
 older under this chapter and chapter 119B; 

    (3) all payments made according to a court order for 
 spousal support or the support of children not living in the 
 assistance unit's household shall be disregarded from the income 
 of the person with the legal obligation to pay support, provided 
 that, if there has been a change in the financial circumstances 
 of the person with the legal obligation to pay support since the 
 support order was entered, the person with the legal obligation 
 to pay support has petitioned for a modification of the support 
 order; and 

    (4) an allocation for the unmet need of an ineligible 
 spouse or an ineligible child under the age of 21 for whom the 
 caregiver is financially responsible and who lives with the 
 caregiver according to section 256J.36. 

    (b) Notwithstanding paragraph (a), when determining initial 
 eligibility for applicant units when at least one member has 
 received MFIP in this state within four months of the most 
 recent application for MFIP, apply the disregard as defined in 
 section 256J.08, subdivision 24, for all unit members. 

    After initial eligibility is established, the assistance 
 payment calculation is based on the monthly income test. 

    Subd. 4.    Monthly income test and determination of 
 assistance payment.  The county agency shall determine ongoing 
 eligibility and the assistance payment amount according to the 
 monthly income test.  To be eligible for MFIP, the result of the 
 computations in paragraphs (a) to (e) must be at least $1. 

    (a) Apply an income disregard as defined in section 
 256J.08, subdivision 24, to gross earnings and subtract this 
 amount from the family wage level.  If the difference is equal 
 to or greater than the MFIP standard of need, the assistance 
 payment is equal to the MFIP standard of need.  If the 
 difference is less than the MFIP standard of need, the 
 assistance payment is equal to the difference.  The employment 
 disregard in this paragraph must be deducted every month there 
 is earned income. 

    (b) All payments made according to a court order for 
 spousal support or the support of children not living in the 
 assistance unit's household must be disregarded from the income 
 of the person with the legal obligation to pay support, provided 
 that, if there has been a change in the financial circumstances 
 of the person with the legal obligation to pay support since the 
 support order was entered, the person with the legal obligation 
 to pay support has petitioned for a modification of the court 
 order. 

    (c) An allocation for the unmet need of an ineligible 
 spouse or an ineligible child under the age of 21 for whom the 
 caregiver is financially responsible and who lives with the 
 caregiver must be made according to section 256J.36. 

    (d) Subtract unearned income dollar for dollar from the 
 MFIP standard of need to determine the assistance payment amount.

    (e) When income is both earned and unearned, the amount of 
 the assistance payment must be determined by first treating 
 gross earned income as specified in paragraph (a).  After 
 determining the amount of the assistance payment under paragraph 
 (a), unearned income must be subtracted from that amount dollar 
 for dollar to determine the assistance payment amount. 

    (f) When the monthly income is greater than the MFIP 
 standard of need after deductions and the income will only 
 exceed the standard for one month, the county agency must 
 suspend the assistance payment for the payment month. 

    Subd. 5.    Distribution of income.  The income of all 
 members of the assistance unit must be counted.  Income may also 
 be deemed from ineligible persons to the assistance unit.  
 Income must be attributed to the person who earns it or to the 
 assistance unit according to paragraphs (a) to (c). 

    (a) Funds distributed from a trust, whether from the 
 principal holdings or sale of trust property or from the 
 interest and other earnings of the trust holdings, must be 
 considered income when the income is legally available to an 
 applicant or participant.  Trusts are presumed legally available 
 unless an applicant or participant can document that the trust 
 is not legally available. 

    (b) Income from jointly owned property must be divided 
 equally among property owners unless the terms of ownership 
 provide for a different distribution. 

    (c) Deductions are not allowed from the gross income of a 
 financially responsible household member or by the members of an 
 assistance unit to meet a current or prior debt. 

    HIST: 1997 c 85 art 1 s 13; 1998 c 407 art 6 s 43; 1999 c 159 
 s 81; 1999 c 245 art 6 s 20-22; 2000 c 488 art 10 s 8; 1Sp2001 c 
 9 art 10 s 13,66; 2002 c 379 art 1 s 113; 1Sp2003 c 14 art 1 s 
 33,34; 2004 c 288 art 4 s 32,33; 2005 c 98 art 1 s 12 

     256J.24 Family composition; assistance standards; exit 
  level. 

    Subdivision 1.    MFIP assistance unit.  An MFIP 
 assistance unit is either a group of individuals with at least 
 one minor child who live together whose needs, assets, and 
 income are considered together and who receive MFIP assistance, 
 or a pregnant woman and her spouse who receive MFIP assistance.  

    Individuals identified in subdivision 2 must be included in 
 the MFIP assistance unit.  Individuals identified in subdivision 
 3 are ineligible to receive MFIP.  Individuals identified in 
 subdivision 4 may be included in the assistance unit at their 
 option.  Individuals not included in the assistance unit who are 
 identified in section 256J.37, subdivisions 1 to 2, must have 
 their income and assets considered when determining eligibility 
 and benefits for an MFIP assistance unit.  All assistance unit 
 members, whether mandatory or elective, who live together and 
 for whom one caregiver or two caregivers apply must be included 
 in a single assistance unit. 

    Subd. 2.    Mandatory assistance unit composition.  
 Except for minor caregivers and their children who must be in a 
 separate assistance unit from the other persons in the 
 household, when the following individuals live together, they 
 must be included in the assistance unit: 

    (1) a minor child, including a pregnant minor; 

    (2) the minor child's minor siblings, minor half-siblings, 
 and minor step-siblings; 

    (3) the minor child's natural parents, adoptive parents, 
 and stepparents; and 

    (4) the spouse of a pregnant woman.  

    A minor child must have a caregiver for the child to be 
 included in the assistance unit. 

    Subd. 3.    Individuals who must be excluded from an 
 assistance unit.  (a) The following individuals who are part 
 of the assistance unit determined under subdivision 2 are 
 ineligible to receive MFIP: 

    (1) individuals who are recipients of Supplemental Security 
 Income or Minnesota supplemental aid; 

    (2) individuals disqualified from the food stamp or food 
 support program or MFIP, until the disqualification ends; 

    (3) children on whose behalf federal, state or local foster 
 care payments are made, except as provided in sections 256J.13, 
 subdivision 2, and 256J.74, subdivision 2; and 

    (4) children receiving ongoing monthly adoption assistance 
 payments under section 259.67.  

    (b) The exclusion of a person under this subdivision does 
 not alter the mandatory assistance unit composition. 

    Subd. 4.    Individuals who may elect to be included in 
 the assistance unit.  (a) The minor child's eligible caregiver 
 may choose to be in the assistance unit, if the caregiver is not 
 required to be in the assistance unit under subdivision 2.  If 
 the eligible caregiver chooses to be in the assistance unit, 
 that person's spouse must also be in the unit. 

    (b) Any minor child not related as a sibling, stepsibling, 
 or adopted sibling to the minor child in the unit, but for whom 
 there is an eligible caregiver may elect to be in the unit. 

    (c) A foster care provider of a minor child who is 
 receiving federal, state, or local foster care maintenance 
 payments may elect to receive MFIP if the provider meets the 
 definition of caregiver under section 256J.08, subdivision 11.  
 If the provider chooses to receive MFIP, the spouse of the 
 provider must also be included in the assistance unit with the 
 provider.  The provider and spouse are eligible for assistance 
 even if the only minor child living in the provider's home is 
 receiving foster care maintenance payments. 

    (d) The adult caregiver or caregivers of a minor parent are 
 eligible to be a separate assistance unit from the minor parent 
 and the minor parent's child when: 

    (1) the adult caregiver or caregivers have no other minor 
 children in the household; 

    (2) the minor parent and the minor parent's child are 
 living together with the adult caregiver or caregivers; and 

    (3) the minor parent and the minor parent's child receive 
 MFIP, or would be eligible to receive MFIP, if they were not 
 receiving SSI benefits. 

    Subd. 5.    MFIP transitional standard.  The MFIP 
 transitional standard is based on the number of persons in the 
 assistance unit eligible for both food and cash assistance 
 unless the restrictions in subdivision 6 on the birth of a child 
 apply.  The following table represents the transitional 
 standards effective October 1, 2004. 

     Number of    Transitional      Cash          Food

  Eligible People  Standard        Portion       Portion

       1             $379:           $250          $129

       2             $675:           $437          $238

       3             $876:           $532          $344

       4             $1,036:         $621          $415

       5             $1,180:         $697          $483

       6             $1,350:         $773          $577

       7             $1,472:         $850          $622

       8             $1,623:         $916          $707

       9             $1,772:         $980          $792

      10             $1,915:       $1,035          $880

 over 10             add $142:        $53           $89

 per additional member.

    The commissioner shall annually publish in the State 
 Register the transitional standard for an assistance unit sizes 
 1 to 10 including a breakdown of the cash and food portions. 

    Subd. 5a.    Food portion of MFIP transitional standard. 
  The commissioner shall adjust the food portion of the MFIP 
 transitional standard by October 1 each year beginning October 
 1998 to reflect the cost-of-living adjustments to the Food Stamp 
 Program.  The commissioner shall annually publish in the State 
 Register the transitional standard for an assistance unit of 
 sizes one to ten. 

    Subd. 6.    Family cap.  (a) MFIP assistance units shall 
 not receive an increase in the cash portion of the transitional 
 standard as a result of the birth of a child, unless one of the 
 conditions under paragraph (b) is met.  The child shall be 
 considered a member of the assistance unit according to 
 subdivisions 1 to 3, but shall be excluded in determining family 
 size for purposes of determining the amount of the cash portion 
 of the transitional standard under subdivision 5.  The child 
 shall be included in determining family size for purposes of 
 determining the food portion of the transitional standard.  The 
 transitional standard under this subdivision shall be the total 
 of the cash and food portions as specified in this paragraph.  
 The family wage level under this subdivision shall be based on 
 the family size used to determine the food portion of the 
 transitional standard. 

    (b) A child shall be included in determining family size 
 for purposes of determining the amount of the cash portion of 
 the MFIP transitional standard when at least one of the 
 following conditions is met: 

    (1) for families receiving MFIP assistance on July 1, 2003, 
 the child is born to the adult parent before May 1, 2004; 

    (2) for families who apply for the diversionary work 
 program under section 256J.95 or MFIP assistance on or after 
 July 1, 2003, the child is born to the adult parent within ten 
 months of the date the family is eligible for assistance; 

    (3) the child was conceived as a result of a sexual assault 
 or incest, provided that the incident has been reported to a law 
 enforcement agency; 

    (4) the child's mother is a minor caregiver as defined in 
 section 256J.08, subdivision 59, and the child, or multiple 
 children, are the mother's first birth; or 

    (5) any child previously excluded in determining family 
 size under paragraph (a) shall be included if the adult parent 
 or parents have not received benefits from the diversionary work 
 program under section 256J.95 or MFIP assistance in the previous 
 ten months.  An adult parent or parents who reapply and have 
 received benefits from the diversionary work program or MFIP 
 assistance in the past ten months shall be under the ten-month 
 grace period of their previous application under clause (2). 

    (c) Income and resources of a child excluded under this 
 subdivision, except child support received or distributed on 
 behalf of this child, must be considered using the same policies 
 as for other children when determining the grant amount of the 
 assistance unit. 

    (d) The caregiver must assign support and cooperate with 
 the child support enforcement agency to establish paternity and 
 collect child support on behalf of the excluded child.  Failure 
 to cooperate results in the sanction specified in section 
 256J.46, subdivisions 2 and 2a.  Current support paid on behalf 
 of the excluded child shall be distributed according to section 
 256.741, subdivision 15. 

    (e) County agencies must inform applicants of the 
 provisions under this subdivision at the time of each 
 application and at recertification.  

    (f) Children excluded under this provision shall be deemed 
 MFIP recipients for purposes of child care under chapter 119B. 

    Subd. 7.    Family wage level.  The family wage level is 
 110 percent of the transitional standard under subdivision 5 or 
 6, when applicable, and is the standard used when there is 
 earned income in the assistance unit.  As specified in section 
 256J.21, earned income is subtracted from the family wage level 
 to determine the amount of the assistance payment.  The 
 assistance payment may not exceed the transitional standard 
 under subdivision 5 or 6, or the shared household standard under 
 subdivision 9, whichever is applicable, for the assistance unit. 

    Subd. 8. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 9.    Shared household standard; MFIP.  (a) Except 
 as prohibited in paragraph (b), the county agency must use the 
 shared household standard when the household includes one or 
 more unrelated members, as that term is defined in section 
 256J.08, subdivision 86a.  The county agency must use the shared 
 household standard, unless a member of the assistance unit is a 
 victim of family violence and has an alternative employment 
 plan, regardless of the number of unrelated members in the 
 household. 

    (b) The county agency must not use the shared household 
 standard when all unrelated members are one of the following: 

    (1) a recipient of public assistance benefits, including 
 food stamps or food support, Supplemental Security Income, 
 adoption assistance, relative custody assistance, or foster care 
 payments; 

    (2) a roomer or boarder, or a person to whom the assistance 
 unit is paying room or board; 

    (3) a minor child under the age of 18; 

    (4) a minor caregiver living with the minor caregiver's 
 parents or in an approved supervised living arrangement; 

    (5) a caregiver who is not the parent of the minor child in 
 the assistance unit; or 

    (6) an individual who provides child care to a child in the 
 MFIP assistance unit. 

    (c) The shared household standard must be discontinued if 
 it is not approved by the United States Department of 
 Agriculture under the MFIP waiver. 

    Subd. 10.    MFIP exit level.  The commissioner shall 
 adjust the MFIP earned income disregard to ensure that most 
 participants do not lose eligibility for MFIP until their income 
 reaches at least 115 percent of the federal poverty guidelines 
 in effect in October of each fiscal year.  The adjustment to the 
 disregard shall be based on a household size of three, and the 
 resulting earned income disregard percentage must be applied to 
 all household sizes.  The adjustment under this subdivision must 
 be implemented at the same time as the October food stamp or 
 food support cost-of-living adjustment is reflected in the food 
 portion of MFIP transitional standard as required under 
 subdivision 5a. 

    HIST: 1997 c 85 art 1 s 14; 1998 c 407 art 6 s 44-51; 1999 c 
 245 art 6 s 23-28; 1Sp2001 c 9 art 10 s 14-16,66; 2002 c 379 art 
 1 s 113; 1Sp2003 c 14 art 1 s 35-39,106; 2004 c 288 art 4 s 34; 
 2005 c 98 art 1 s 13 

  256J.25 Repealed, 1998 c 407 art 6 s 118 

     256J.26 Persons ineligible; vendor payments. 

    Subdivision 1.    Person convicted of drug offenses.  (a)
 Applicants or participants who have been convicted of a drug 
 offense committed after July 1, 1997, may, if otherwise 
 eligible, receive MFIP benefits subject to the following 
 conditions: 

    (1) Benefits for the entire assistance unit must be paid in 
 vendor form for shelter and utilities during any time the 
 applicant is part of the assistance unit. 

    (2) The convicted applicant or participant shall be subject 
 to random drug testing as a condition of continued eligibility 
 and following any positive test for an illegal controlled 
 substance is subject to the following sanctions: 

    (i) for failing a drug test the first time, the residual 
 amount of the participant's grant after making vendor payments 
 for shelter and utility costs, if any, must be reduced by an 
 amount equal to 30 percent of the MFIP standard of need for an 
 assistance unit of the same size.  When a sanction under this 
 subdivision is in effect, the job counselor must attempt to meet 
 with the person face-to-face.  During the face-to-face meeting, 
 the job counselor must explain the consequences of a subsequent 
 drug test failure and inform the participant of the right to 
 appeal the sanction under section 256J.40.  If a face-to-face 
 meeting is not possible, the county agency must send the 
 participant a notice of adverse action as provided in section 
 256J.31, subdivisions 4 and 5, and must include the information 
 required in the face-to-face meeting; or 

    (ii) for failing a drug test two times, the participant is 
 permanently disqualified from receiving MFIP assistance, both 
 the cash and food portions.  The assistance unit's MFIP grant 
 must be reduced by the amount which would have otherwise been 
 made available to the disqualified participant.  
 Disqualification under this item does not make a participant 
 ineligible for food stamps or food support.  Before a 
 disqualification under this provision is imposed, the job 
 counselor must attempt to meet with the participant 
 face-to-face.  During the face-to-face meeting, the job 
 counselor must identify other resources that may be available to 
 the participant to meet the needs of the family and inform the 
 participant of the right to appeal the disqualification under 
 section 256J.40.  If a face-to-face meeting is not possible, the 
 county agency must send the participant a notice of adverse 
 action as provided in section 256J.31, subdivisions 4 and 5, and 
 must include the information required in the face-to-face 
 meeting. 

    (3) A participant who fails a drug test the first time and 
 is under a sanction due to other MFIP program requirements is 
 considered to have more than one occurrence of noncompliance and 
 is subject to the applicable level of sanction as specified 
 under section 256J.46, subdivision 1, paragraph (d). 

    (b) Applicants requesting only food stamps or food support 
 or participants receiving only food stamps or food support, who 
 have been convicted of a drug offense that occurred after July 
 1, 1997, may, if otherwise eligible, receive food stamps or food 
 support if the convicted applicant or participant is subject to 
 random drug testing as a condition of continued eligibility.  
 Following a positive test for an illegal controlled substance, 
 the applicant is subject to the following sanctions: 

    (1) for failing a drug test the first time, food stamps or 
 food support shall be reduced by an amount equal to 30 percent 
 of the applicable food stamp or food support allotment.  When a 
 sanction under this clause is in effect, a job counselor must 
 attempt to meet with the person face-to-face.  During the 
 face-to-face meeting, a job counselor must explain the 
 consequences of a subsequent drug test failure and inform the 
 participant of the right to appeal the sanction under section 
 256J.40.  If a face-to-face meeting is not possible, a county 
 agency must send the participant a notice of adverse action as 
 provided in section 256J.31, subdivisions 4 and 5, and must 
 include the information required in the face-to-face meeting; 
 and 

    (2) for failing a drug test two times, the participant is 
 permanently disqualified from receiving food stamps or food 
 support.  Before a disqualification under this provision is 
 imposed, a job counselor must attempt to meet with the 
 participant face-to-face.  During the face-to-face meeting, the 
 job counselor must identify other resources that may be 
 available to the participant to meet the needs of the family and 
 inform the participant of the right to appeal the 
 disqualification under section 256J.40.  If a face-to-face 
 meeting is not possible, a county agency must send the 
 participant a notice of adverse action as provided in section 
 256J.31, subdivisions 4 and 5, and must include the information 
 required in the face-to-face meeting. 

    (c) For the purposes of this subdivision, "drug offense" 
 means an offense that occurred after July 1, 1997, of sections 
 152.021 to 152.025, 152.0261, 152.0262, or 152.096.  Drug 
 offense also means a conviction in another jurisdiction of the 
 possession, use, or distribution of a controlled substance, or 
 conspiracy to commit any of these offenses, if the offense 
 occurred after July 1, 1997, and the conviction is a felony 
 offense in that jurisdiction, or in the case of New Jersey, a 
 high misdemeanor. 

    Subd. 2.    Parole violators.  An individual violating a 
 condition of probation or parole or supervised release imposed 
 under federal law or the law of any state is disqualified from 
 receiving MFIP. 

    Subd. 3.    Fleeing felons.  An individual who is 
 fleeing to avoid prosecution, or custody, or confinement after 
 conviction for a crime that is a felony under the laws of the 
 jurisdiction from which the individual flees, or in the case of 
 New Jersey, is a high misdemeanor, is disqualified from 
 receiving MFIP. 

    Subd. 4.    Denial of assistance for ten years to a person 
 found to have fraudulently misrepresented residency.  An 
 individual who is convicted in federal or state court of having 
 made a fraudulent statement or representation with respect to 
 the place of residence of the individual in order to receive 
 assistance simultaneously from two or more states is 
 disqualified from receiving MFIP for ten years beginning on the 
 date of the conviction. 

    HIST: 1997 c 85 art 1 s 16; 1997 c 203 art 12 s 10; 1997 c 245 
 art 4 s 1; 1998 c 407 art 6 s 52-55; 1999 c 159 s 82-85; 1999 c 
 245 art 6 s 29; 1Sp2001 c 9 art 10 s 17; 2002 c 379 art 1 s 113; 
 1Sp2003 c 14 art 1 s 106; 2005 c 136 art 7 s 21 

     256J.28 Provisions related specifically to food stamp or food 
  support 
  assistance. 

    Subdivision 1.    Expedited issuance of food stamp 
 assistance.  The following households are entitled to 
 expedited issuance of food stamp assistance: 

    (1) households with less than $150 in monthly gross income 
 provided their liquid assets do not exceed $100; 

    (2) migrant or seasonal farm worker households who are 
 destitute as defined in Code of Federal Regulations, title 7, 
 subtitle B, chapter 2, subchapter C, part 273, section 273.10, 
 paragraph (e)(3), provided their liquid assets do not exceed 
 $100; and 

    (3) eligible households whose combined monthly gross income 
 and liquid resources are less than the household's monthly rent 
 or mortgage and utilities. 

    For any month an individual receives expedited Food Stamp 
 Program benefits, the individual is not eligible for the MFIP 
 food portion of assistance. 

    Subd. 2.    Food stamps for household members not in the 
 assistance unit.  (a) For household members who purchase and 
 prepare food with the MFIP assistance unit but are not part of 
 the assistance unit, the county agency must determine a separate 
 food stamp benefit based on regulations agreed upon with the 
 United States Department of Agriculture. 

    (b) Fair hearing requirements for persons who receive food 
 stamps under this subdivision are governed by section 256.045, 
 and Code of Federal Regulations, title 7, subtitle B, chapter 
 II, part 273, section 273.15. 

    Subd. 3.    Income disregard for certain programs, food 
 assistance portion of assistance payment.  The portion of the 
 MFIP assistance payment that is designated by the commissioner 
 as the food assistance portion of the assistance payment must be 
 disregarded as income in the following programs: 

    (1) housing subsidy programs; 

    (2) low-income home energy assistance program; 

    (3) Supplemental Security Income, when determining interim 
 assistance amount; and 

    (4) other programs that do not count food stamps as income. 

    For the purposes of this subdivision, the food assistance 
 portion of the assistance payment means a predetermined portion 
 of the MFIP assistance payment that may be received in 
 point-of-purchase sites or as food stamps.  The predetermined 
 portion of the assistance payment will vary by family profile, 
 which is based on family size. 

    Subd. 4. Repealed, 1998 c 407 art 6 s 118 

    Subd. 5.    Food stamps for persons residing in a battered 
 woman's shelter.  Members of an MFIP assistance unit residing 
 in a battered woman's shelter may receive food stamps or the 
 food portion twice in a month if the unit that initially 
 received the food stamps or food portion included the alleged 
 abuser. 

    HIST: 1997 c 85 art 1 s 17; 1998 c 407 art 6 s 56-58; 1Sp2001 
 c 9 art 10 s 66 

     256J.29 Ineligibility for state-funded programs. 

    Beginning July 1, 2007, legal noncitizens ineligible for 
 federally funded cash or food benefits due to 1996 changes in 
 federal law and subsequent relevant enactments, who are eligible 
 for state-funded MFIP cash or food assistance, will be 
 ineligible for state-funded MFIP under this chapter. 

    HIST: 1997 c 203 art 9 s 21; 1998 c 407 art 6 s 111; 2000 c 
 488 art 10 s 28; 1Sp2001 c 9 art 10 s 62; 1Sp2003 c 14 art 1 s 
 105 

     256J.30 Applicant and participant requirements and 
  responsibilities. 

    Subdivision 1.    Applicant reporting requirements.  An 
 applicant must provide information on an application form and 
 supplemental forms about the applicant's circumstances which 
 affect MFIP eligibility or the assistance payment.  An applicant 
 must report changes identified in subdivision 9 while the 
 application is pending.  When an applicant does not accurately 
 report information on an application, both an overpayment and a 
 referral for a fraud investigation may result.  When an 
 applicant does not provide information or documentation, the 
 receipt of the assistance payment may be delayed or the 
 application may be denied depending on the type of information 
 required and its effect on eligibility. 

    Subd. 2.    Requirement to apply for other benefits.  An 
 applicant or participant must apply for, accept if eligible, and 
 follow through with appealing any denials of eligibility for 
 benefits from other programs for which the applicant or 
 participant is potentially eligible and which would, if 
 received, offset assistance payments.  An applicant's or 
 participant's failure to complete application for these benefits 
 without good cause results in denial or termination of 
 assistance.  Good cause for failure to apply for these benefits 
 is allowed when circumstances beyond the control of the 
 applicant or participant prevent the applicant or participant 
 from making an application. 

    Subd. 3.    Responsibility to inquire.  An applicant or 
 participant who does not know or is unsure whether a given 
 change in circumstances will affect the applicant's or 
 participant's MFIP eligibility or assistance payment must 
 contact the county agency for information.  

    Subd. 4.    Participant's completion of recertification of 
 eligibility form.  A participant must complete forms 
 prescribed by the commissioner which are required for 
 recertification of eligibility according to section 256J.32, 
 subdivision 6. 

    Subd. 5.    Monthly MFIP household reports.  Each 
 assistance unit with a member who has earned income or a recent 
 work history, and each assistance unit that has income deemed to 
 it from a financially responsible person must complete a monthly 
 MFIP household report form.  "Recent work history" means the 
 individual received earned income in the report month or any of 
 the previous three calendar months even if the earnings are 
 excluded.  To be complete, the MFIP household report form must 
 be signed and dated by the caregivers no earlier than the last 
 day of the reporting period.  All questions required to 
 determine assistance payment eligibility must be answered, and 
 documentation of earned income must be included. 

    Subd. 6. Repealed, 1999 c 245 art 6 s 89 

    Subd. 7.    Due date of MFIP household report form.  An 
 MFIP household report form must be received by the county agency 
 by the eighth calendar day of the month following the reporting 
 period covered by the form.  When the eighth calendar day of the 
 month falls on a weekend or holiday, the MFIP household report 
 form must be received by the county agency the first working day 
 that follows the eighth calendar day.  

    Subd. 8.    Late MFIP household report forms.  
 Paragraphs (a) to (d) apply to the reporting requirements in 
 subdivision 7. 

    (a) When the county agency receives an incomplete MFIP 
 household report form, the county agency must immediately return 
 the incomplete form and clearly state what the caregiver must do 
 for the form to be complete. 

    (b) The automated eligibility system must send a notice of 
 proposed termination of assistance to the assistance unit if a 
 complete MFIP household report form is not received by a county 
 agency.  The automated notice must be mailed to the caregiver by 
 approximately the 16th of the month.  When a caregiver submits 
 an incomplete form on or after the date a notice of proposed 
 termination has been sent, the termination is valid unless the 
 caregiver submits a complete form before the end of the month. 

    (c) An assistance unit required to submit an MFIP household 
 report form is considered to have continued its application for 
 assistance if a complete MFIP household report form is received 
 within a calendar month after the month in which the form was 
 due and assistance shall be paid for the period beginning with 
 the first day of that calendar month. 

    (d) A county agency must allow good cause exemptions from 
 the reporting requirements under subdivisions 5 and 6 when any 
 of the following factors cause a caregiver to fail to provide 
 the county agency with a completed MFIP household report form 
 before the end of the month in which the form is due: 

    (1) an employer delays completion of employment 
 verification; 

    (2) a county agency does not help a caregiver complete the 
 MFIP household report form when the caregiver asks for help; 

    (3) a caregiver does not receive an MFIP household report 
 form due to mistake on the part of the department or the county 
 agency or due to a reported change in address; 

    (4) a caregiver is ill, or physically or mentally 
 incapacitated; or 

    (5) some other circumstance occurs that a caregiver could 
 not avoid with reasonable care which prevents the caregiver from 
 providing a completed MFIP household report form before the end 
 of the month in which the form is due. 

    Subd. 9.    Changes that must be reported.  A caregiver 
 must report the changes or anticipated changes specified in 
 clauses (1) to (16) within ten days of the date they occur, at 
 the time of the periodic recertification of eligibility under 
 section 256J.32, subdivision 6, or within eight calendar days of 
 a reporting period as in subdivision 5 or 6, whichever occurs 
 first.  A caregiver must report other changes at the time of the 
 periodic recertification of eligibility under section 256J.32, 
 subdivision 6, or at the end of a reporting period under 
 subdivision 5 or 6, as applicable.  A caregiver must make these 
 reports in writing to the county agency.  When a county agency 
 could have reduced or terminated assistance for one or more 
 payment months if a delay in reporting a change specified under 
 clauses (1) to (15) had not occurred, the county agency must 
 determine whether a timely notice under section 256J.31, 
 subdivision 4, could have been issued on the day that the change 
 occurred.  When a timely notice could have been issued, each 
 month's overpayment subsequent to that notice must be considered 
 a client error overpayment under section 256J.38.  Calculation 
 of overpayments for late reporting under clause (16) is 
 specified in section 256J.09, subdivision 9.  Changes in 
 circumstances which must be reported within ten days must also 
 be reported on the MFIP household report form for the reporting 
 period in which those changes occurred.  Within ten days, a 
 caregiver must report: 

    (1) a change in initial employment; 

    (2) a change in initial receipt of unearned income; 

    (3) a recurring change in unearned income; 

    (4) a nonrecurring change of unearned income that exceeds 
 $30; 

    (5) the receipt of a lump sum; 

    (6) an increase in assets that may cause the assistance 
 unit to exceed asset limits; 

    (7) a change in the physical or mental status of an 
 incapacitated member of the assistance unit if the physical or 
 mental status is the basis of exemption from an MFIP employment 
 services program under section 256J.56, or as the basis for 
 reducing the hourly participation requirements under section 
 256J.55, subdivision 1, or the type of activities included in an 
 employment plan under section 256J.521, subdivision 2; 

    (8) a change in employment status; 

    (9) information affecting an exception under section 
 256J.24, subdivision 9; 

    (10) the marriage or divorce of an assistance unit member; 

    (11) the death of a parent, minor child, or financially 
 responsible person; 

    (12) a change in address or living quarters of the 
 assistance unit; 

    (13) the sale, purchase, or other transfer of property; 

    (14) a change in school attendance of a caregiver under age 
 20 or an employed child; 

    (15) filing a lawsuit, a workers' compensation claim, or a 
 monetary claim against a third party; and 

    (16) a change in household composition, including births, 
 returns to and departures from the home of assistance unit 
 members and financially responsible persons, or a change in the 
 custody of a minor child. 

    Subd. 10. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 11.    Requirement to assign support and maintenance 
 rights.  An assistance unit is ineligible for MFIP unless the 
 caregiver assigns all rights to child support and spousal 
 maintenance benefits according to section 256.741. 

    Subd. 12.    Requirement to provide Social Security 
 numbers.  Each member of the assistance unit must provide the 
 member's Social Security number to the county agency, except for 
 members in the assistance unit who are qualified noncitizens who 
 are victims of domestic violence as defined under section 
 256J.08, subdivision 73, clause (7).  When a Social Security 
 number is not provided to the county agency for verification, 
 this requirement is satisfied when each member of the assistance 
 unit cooperates with the procedures for verification of numbers, 
 issuance of duplicate cards, and issuance of new numbers which 
 have been established jointly between the Social Security 
 Administration and the commissioner. 

    HIST: 1997 c 85 art 1 s 18; 1998 c 407 art 6 s 59,60; 1999 c 
 245 art 6 s 30-33; 1Sp2001 c 9 art 10 s 66; 1Sp2003 c 14 art 1 s 
 40 

     256J.31 Applicant and participant rights and county 
  agency responsibilities. 

    Subdivision 1.    Right to information.  An applicant or 
 participant has the right to obtain from the county agency 
 information about the benefits, requirements, restrictions, and 
 appeal provisions of public assistance programs. 

    Subd. 2.    Right to authorized representative.  An 
 applicant or participant has the right to designate an 
 authorized representative to act on the applicant's or 
 participant's behalf.  An applicant or participant has the right 
 to be assisted or represented by an authorized representative in 
 eligibility determinations, recertification, conciliation 
 conferences, the fair hearing process, and any other contacts 
 with the county agency or the department.  When a county agency 
 determines that it is necessary for a person to assist an 
 applicant or participant, the county agency must designate a 
 staff member to assist the applicant or participant.  Upon a 
 request from an applicant or participant, a county agency must 
 provide addresses and telephone numbers of organizations that 
 provide legal services at low cost or no cost to low-income 
 persons. 

    Subd. 3.    Right of applicant to notice.  A county 
 agency must notify an applicant of the disposition of the 
 applicant's application.  The notice must be in writing and on 
 forms prescribed by the commissioner.  The county agency must 
 mail the notice to the last known mailing address provided by 
 the applicant.  When an application is denied, the county agency 
 must notify the applicant in writing of the reasons for the 
 denial, of the right to appeal, and of the right to reapply for 
 assistance. 

    Subd. 4.    Participant's right to notice.  A county 
 agency must give a participant written notice of all adverse 
 actions affecting the participant including payment reductions, 
 suspensions, terminations, and use of protective, vendor, or 
 two-party payments.  The notice of adverse action must be on a 
 form prescribed or approved by the commissioner, must be 
 understandable at a seventh grade reading level, and must be 
 mailed to the last known mailing address provided by the 
 participant.  A notice written in English must include the 
 Department of Human Services language block and must be sent to 
 every applicable participant.  The county agency must state on 
 the notice of adverse action the action it intends to take, the 
 reasons for the action, the participant's right to appeal the 
 action, the conditions under which assistance can be continued 
 pending an appeal decision, and the related consequences of the 
 action. 

    Subd. 5.    Mailing of notice.  The notice of adverse 
 action shall be issued according to paragraphs (a) to (d). 

    (a) A notice of adverse action must be mailed at least ten 
 days before the effective date of the adverse action, except as 
 provided in paragraphs (b) to (d). 

    (b) A notice of adverse action must be mailed no later than 
 four working days before the end of the month when the county 
 agency: 

    (1) is informed of the death of the only caregiver or payee 
 in an assistance unit; 

    (2) receives a signed statement from the caregiver that 
 assistance is no longer wanted; 

    (3) has factual information to reduce, suspend, or 
 terminate assistance based on the failure to timely report 
 changes; 

    (4) verifies that a member of the assistance unit has 
 entered a regional treatment center or a licensed residential 
 facility for medical or psychological treatment or 
 rehabilitation; 

    (5) verifies that a member of an assistance unit has been 
 removed from the home as a result of a judicial determination or 
 placed in foster care, and the provisions of section 256J.13, 
 subdivision 2, paragraph (c), clause (2), do not apply; or 

    (6) cannot locate a caregiver. 

    (c) A notice of adverse action must be mailed for a payment 
 month when the caregiver makes a written request for closure 
 before the first of that payment month. 

    (d) A notice of adverse action must be mailed before the 
 effective date of the adverse action when the county agency 
 receives the caregiver's signed and completed MFIP household 
 report form or recertification form that includes information 
 that requires payment reduction, suspension, or termination. 

    Subd. 6.    Appeal rights.  An applicant, participant, 
 or former participant has the right to request a fair hearing 
 when aggrieved by an action or inaction of a county agency.  A 
 request for a fair hearing and rights pending a fair hearing are 
 set as specified in section 256J.40. 

    Subd. 7.    Case records available.  A county agency 
 must make financial case records available to the participant or 
 former participant as soon as possible but no later than the 
 fifth business day following the date of the request.  When the 
 participant or former participant asks for photocopies of 
 material from the financial case record, the county agency must 
 provide one copy of each page at no cost. 

    Subd. 8.    Right to manage affairs.  Except for 
 protective payment provisions authorized under section 256J.39, 
 participants have the right to manage their own affairs. 

    Subd. 9.    Right to protection.  Minor caregivers have 
 the right to protection.  The county agency must refer a minor 
 caregiver to the social service unit within 30 days of the date 
 the application is approved.  The social service unit must 
 assist the caregiver who is less than 18 years of age to develop 
 a plan as specified in section 256J.54. 

    Subd. 10.    Protection from garnishment.  MFIP grants 
 or earnings of a caregiver shall be protected from garnishment.  
 This protection for earnings shall extend for a period of six 
 months from the date of termination from MFIP. 

    Subd. 11.    Responsibility to retain case records.  The 
 county agency must retain financial case records and employment 
 and training service records for MFIP cases according to chapter 
 13. 

    Subd. 12.    Right to discontinue cash assistance.  A 
 participant who is not in vendor payment status may discontinue 
 receipt of the cash assistance portion of the MFIP assistance 
 grant and retain eligibility for child care assistance under 
 section 119B.05.  For the months a participant chooses to 
 discontinue the receipt of the cash portion of the MFIP grant, 
 the assistance unit accrues months of eligibility to be applied 
 toward eligibility for child care under section 119B.05. 

    HIST: 1997 c 85 art 1 s 19; 1998 c 407 art 6 s 61-63; 1999 c 
 245 art 6 s 34,35; 1Sp2001 c 9 art 2 s 57; art 10 s 18,66; 2002 
 c 379 art 1 s 113 

     256J.315 County and tribal cooperation. 

    The county agency must cooperate with tribal governments in 
 the implementation of MFIP to ensure that the program meets the 
 special needs of persons living on Indian reservations.  This 
 cooperation must include, but is not limited to, the sharing of 
 MFIP duties including initial screening, orientation, 
 assessments, and provision of employment and training services.  
 The county agency shall encourage tribal governments to assume 
 duties related to MFIP and shall work cooperatively with tribes 
 that have assumed responsibility for a portion of the MFIP 
 program to expand tribal responsibilities, if that expansion is 
 requested by the tribe. 

    HIST: 1997 c 85 art 1 s 20; 1Sp2001 c 9 art 10 s 66 

     256J.32 Documenting, verifying, and recertifying 
  eligibility. 

    Subdivision 1.    Verification of information.  A county 
 agency must only require verification of information necessary 
 to determine MFIP eligibility and the amount of the assistance 
 payment. 

    Subd. 2.    Documentation.  The applicant or participant 
 must document the information required under subdivisions 4 to 6 
 or authorize the county agency to verify the information.  The 
 applicant or participant has the burden of providing documentary 
 evidence to verify eligibility.  The county agency shall assist 
 the applicant or participant in obtaining required documents 
 when the applicant or participant is unable to do so.  The 
 county agency may accept a signed personal statement from the 
 applicant or participant only for factors specified under 
 subdivision 8.  

    Subd. 3.    Contacting third parties.  A county agency 
 must not request information about an applicant or participant 
 that is not of public record from a source other than county 
 agencies, the department, or the United States Department of 
 Health and Human Services without the person's prior written 
 consent.  An applicant's signature on an application form 
 constitutes consent for contact with the sources specified on 
 the application.  A county agency may use a single consent form 
 to contact a group of similar sources, such as banks or 
 insurance agencies, but the sources to be contacted must be 
 identified by the county agency prior to requesting an 
 applicant's consent. 

    Subd. 4.    Factors to be verified.  The county agency 
 shall verify the following at application: 

    (1) identity of adults; 

    (2) presence of the minor child in the home, if 
 questionable; 

    (3) relationship of a minor child to caregivers in the 
 assistance unit; 

    (4) age, if necessary to determine MFIP eligibility; 

    (5) immigration status; 

    (6) Social Security number according to the requirements of 
 section 256J.30, subdivision 12; 

    (7) income; 

    (8) self-employment expenses used as a deduction; 

    (9) source and purpose of deposits and withdrawals from 
 business accounts; 

    (10) spousal support and child support payments made to 
 persons outside the household; 

    (11) real property; 

    (12) vehicles; 

    (13) checking and savings accounts; 

    (14) savings certificates, savings bonds, stocks, and 
 individual retirement accounts; 

    (15) pregnancy, if related to eligibility; 

    (16) inconsistent information, if related to eligibility; 

    (17) burial accounts; 

    (18) school attendance, if related to eligibility; 

    (19) residence; 

    (20) a claim of family violence if used as a basis to 
 qualify for the family violence waiver; 

    (21) disability if used as the basis for an exemption from 
 employment and training services requirements under section 
 256J.56 or as the basis for reducing the hourly participation 
 requirements under section 256J.55, subdivision 1, or the type 
 of activity included in an employment plan under section 
 256J.521, subdivision 2; and 

    (22) information needed to establish an exception under 
 section 256J.24, subdivision 9. 

    Subd. 5. Repealed, 1998 c 407 art 6 s 118 

    Subd. 5a.    Inconsistent information.  When the county 
 agency verifies inconsistent information under subdivision 4, 
 clause (16), or 6, clause (5), the reason for verifying the 
 information must be documented in the financial case record. 

    Subd. 6.    Recertification.  The county agency shall 
 recertify eligibility in an annual face-to-face interview with 
 the participant and verify the following: 

    (1) presence of the minor child in the home, if 
 questionable; 

    (2) income, unless excluded, including self-employment 
 expenses used as a deduction or deposits or withdrawals from 
 business accounts; 

    (3) assets when the value is within $200 of the asset 
 limit; 

    (4) information to establish an exception under section 
 256J.24, subdivision 9, if questionable; and 

    (5) inconsistent information, if related to eligibility.  

    Subd. 7.    Notice to undocumented persons; release of 
 private data.  County agencies in consultation with the 
 commissioner of human services shall provide notification to 
 undocumented persons regarding the release of personal data to 
 the Immigration and Naturalization Service and develop protocol 
 regarding the release or sharing of data about undocumented 
 persons with the Immigration and Naturalization Service as 
 required under sections 404, 434, and 411A of the Personal 
 Responsibility and Work Opportunity Reconciliation Act of 1996.  

    Subd. 7a.    Requirement to report to immigration and 
 naturalization services.  The commissioner shall comply with 
 the reporting requirements under United States Code, title 42, 
 section 611a, and any federal regulation or guidance adopted 
 under that law. 

    Subd. 8.    Personal statement.  The county agency may 
 accept a signed personal statement from the applicant or 
 participant explaining the reasons that the documentation 
 requested in subdivision 2 is unavailable as sufficient 
 documentation at the time of application, recertification, or 
 change related to eligibility only for the following factors: 

    (1) a claim of family violence if used as a basis to 
 qualify for the family violence waiver; 

    (2) information needed to establish an exception under 
 section 256J.24, subdivision 9; 

    (3) relationship of a minor child to caregivers in the 
 assistance unit; 

    (4) citizenship status from a noncitizen who reports to be, 
 or is identified as, a victim of severe forms of trafficking in 
 persons, if the noncitizen reports that the noncitizen's 
 immigration documents are being held by an individual or group 
 of individuals against the noncitizen's will.  The noncitizen 
 must follow up with the Office of Refugee Resettlement (ORR) to 
 pursue certification.  If verification that certification is 
 being pursued is not received within 30 days, the MFIP case must 
 be closed and the agency shall pursue overpayments.  The ORR 
 documents certifying the noncitizen's status as a victim of 
 severe forms of trafficking in persons, or the reason for the 
 delay in processing, must be received within 90 days, or the 
 MFIP case must be closed and the agency shall pursue 
 overpayments; and 

    (5) other documentation unavailable for reasons beyond the 
 control of the applicant or participant.  Reasonable attempts 
 must have been made to obtain the documents requested under 
 subdivision 2. 

    HIST: 1997 c 85 art 1 s 21; 1998 c 407 art 6 s 64-66; 1999 c 
 245 art 6 s 36,37; 2000 c 488 art 10 s 9; 1Sp2001 c 9 art 10 s 
 19,20,66; 2002 c 379 art 1 s 113; 1Sp2003 c 14 art 1 s 41-44; 
 2004 c 288 art 4 s 35,36 

     256J.33 Prospective and retrospective determination of 
  MFIP eligibility. 

    Subdivision 1.    Determination of eligibility.  A 
 county agency must determine MFIP eligibility prospectively for 
 a payment month based on retrospectively assessing income and 
 the county agency's best estimate of the circumstances that will 
 exist in the payment month. 

    Except as described in section 256J.34, subdivision 1, when 
 prospective eligibility exists, a county agency must calculate 
 the amount of the assistance payment using retrospective 
 budgeting.  To determine MFIP eligibility and the assistance 
 payment amount, a county agency must apply countable income, 
 described in section 256J.37, subdivisions 3 to 10, received by 
 members of an assistance unit or by other persons whose income 
 is counted for the assistance unit, described under sections 
 256J.21 and 256J.37, subdivisions 1 to 2. 

    This income must be applied to the MFIP standard of need or 
 family wage level subject to this section and sections 256J.34 
 to 256J.36.  Income received in a calendar month and not 
 otherwise excluded under section 256J.21, subdivision 2, must be 
 applied to the needs of an assistance unit. 

    Subd. 2.    Prospective eligibility.  A county agency 
 must determine whether the eligibility requirements that pertain 
 to an assistance unit, including those in sections 256J.11 to 
 256J.15 and 256J.20, will be met prospectively for the payment 
 month.  Except for the provisions in section 256J.34, 
 subdivision 1, the income test will be applied retrospectively. 

    Subd. 3.    Retrospective eligibility.  After the first 
 two months of MFIP eligibility, a county agency must continue to 
 determine whether an assistance unit is prospectively eligible 
 for the payment month by looking at all factors other than 
 income and then determine whether the assistance unit is 
 retrospectively income eligible by applying the monthly income 
 test to the income from the budget month.  When the monthly 
 income test is not satisfied, the assistance payment must be 
 suspended when ineligibility exists for one month or ended when 
 ineligibility exists for more than one month. 

    Subd. 4.    Monthly income test.  A county agency must 
 apply the monthly income test retrospectively for each month of 
 MFIP eligibility.  An assistance unit is not eligible when the 
 countable income equals or exceeds the MFIP standard of need or 
 the family wage level for the assistance unit.  The income 
 applied against the monthly income test must include: 

    (1) gross earned income from employment, prior to mandatory 
 payroll deductions, voluntary payroll deductions, wage 
 authorizations, and after the disregards in section 256J.21, 
 subdivision 4, and the allocations in section 256J.36, unless 
 the employment income is specifically excluded under section 
 256J.21, subdivision 2; 

    (2) gross earned income from self-employment less 
 deductions for self-employment expenses in section 256J.37, 
 subdivision 5, but prior to any reductions for personal or 
 business state and federal income taxes, personal FICA, personal 
 health and life insurance, and after the disregards in section 
 256J.21, subdivision 4, and the allocations in section 256J.36; 

    (3) unearned income after deductions for allowable expenses 
 in section 256J.37, subdivision 9, and allocations in section 
 256J.36, unless the income has been specifically excluded in 
 section 256J.21, subdivision 2; 

    (4) gross earned income from employment as determined under 
 clause (1) which is received by a member of an assistance unit 
 who is a minor child or minor caregiver and less than a 
 half-time student; 

    (5) child support and spousal support received by an 
 assistance unit; 

    (6) the income of a parent when that parent is not included 
 in the assistance unit; 

    (7) the income of an eligible relative and spouse who seek 
 to be included in the assistance unit; and 

    (8) the unearned income of a minor child included in the 
 assistance unit. 

    Subd. 5.    When to terminate assistance.  When an 
 assistance unit is ineligible for MFIP assistance for two 
 consecutive months, the county agency must terminate MFIP 
 assistance. 

    HIST: 1997 c 85 art 1 s 22; 1998 c 407 art 6 s 67,68; 1999 c 
 245 art 6 s 38; 2000 c 488 art 10 s 10 

     256J.34 Calculating payments; significant change; income 
  averaging. 

    Subdivision 1.    Prospective budgeting.  A county 
 agency must use prospective budgeting to calculate the 
 assistance payment amount for the first two months for an 
 applicant who has not received assistance in this state for at 
 least one payment month preceding the first month of payment 
 under a current application.  Notwithstanding subdivision 3, 
 paragraph (a), clause (2), a county agency must use prospective 
 budgeting for the first two months for a person who applies to 
 be added to an assistance unit.  Prospective budgeting is not 
 subject to overpayments or underpayments unless fraud is 
 determined under section 256.98. 

    (a) The county agency must apply the income received or 
 anticipated in the first month of MFIP eligibility against the 
 need of the first month.  The county agency must apply the 
 income received or anticipated in the second month against the 
 need of the second month. 

    (b) When the assistance payment for any part of the first 
 two months is based on anticipated income, the county agency 
 must base the initial assistance payment amount on the 
 information available at the time the initial assistance payment 
 is made. 

    (c) The county agency must determine the assistance payment 
 amount for the first two months of MFIP eligibility by budgeting 
 both recurring and nonrecurring income for those two months. 

    Subd. 2.    Retrospective budgeting.  The county agency 
 must use retrospective budgeting to calculate the monthly 
 assistance payment amount after the payment for the first two 
 months has been made under subdivision 1. 

    Subd. 3.    Additional uses of retrospective budgeting.  
 Notwithstanding subdivision 1, the county agency must use 
 retrospective budgeting to calculate the monthly assistance 
 payment amount for the first two months under paragraphs (a) and 
 (b). 

    (a) The county agency must use retrospective budgeting to 
 determine the amount of the assistance payment in the first two 
 months of MFIP eligibility: 

    (1) when an assistance unit applies for assistance for the 
 same month for which assistance has been interrupted, the 
 interruption in eligibility is less than one payment month, the 
 assistance payment for the preceding month was issued in this 
 state, and the assistance payment for the immediately preceding 
 month was determined retrospectively; or 

    (2) when a person applies in order to be added to an 
 assistance unit, that assistance unit has received assistance in 
 this state for at least the two preceding months, and that 
 person has been living with and has been financially responsible 
 for one or more members of that assistance unit for at least the 
 two preceding months. 

    (b) Except as provided in clauses (1) to (4), the county 
 agency must use retrospective budgeting and apply income 
 received in the budget month by an assistance unit and by a 
 financially responsible household member who is not included in 
 the assistance unit against the MFIP standard of need or family 
 wage level to determine the assistance payment to be issued for 
 the payment month. 

    (1) When a source of income ends prior to the third payment 
 month, that income is not considered in calculating the 
 assistance payment for that month.  When a source of income ends 
 prior to the fourth payment month, that income is not considered 
 when determining the assistance payment for that month. 

    (2) When a member of an assistance unit or a financially 
 responsible household member leaves the household of the 
 assistance unit, the income of that departed household member is 
 not budgeted retrospectively for any full payment month in which 
 that household member does not live with that household and is 
 not included in the assistance unit. 

    (3) When an individual is removed from an assistance unit 
 because the individual is no longer a minor child, the income of 
 that individual is not budgeted retrospectively for payment 
 months in which that individual is not a member of the 
 assistance unit, except that income of an ineligible child in 
 the household must continue to be budgeted retrospectively 
 against the child's needs when the parent or parents of that 
 child request allocation of their income against any unmet needs 
 of that ineligible child. 

    (4) When a person ceases to have financial responsibility 
 for one or more members of an assistance unit, the income of 
 that person is not budgeted retrospectively for the payment 
 months which follow the month in which financial responsibility 
 ends. 

    Subd. 4.    Significant change in gross income.  The 
 county agency must recalculate the assistance payment when an 
 assistance unit experiences a significant change, as defined in 
 section 256J.08, resulting in a reduction in the gross income 
 received in the payment month from the gross income received in 
 the budget month.  The county agency must issue a supplemental 
 assistance payment based on the county agency's best estimate of 
 the assistance unit's income and circumstances for the payment 
 month.  Supplemental assistance payments that result from 
 significant changes are limited to two in a 12-month period 
 regardless of the reason for the change.  Notwithstanding any 
 other statute or rule of law, supplementary assistance payments 
 shall not be made when the significant change in income is the 
 result of receipt of a lump sum, receipt of an extra paycheck, 
 business fluctuation in self-employment income, or an assistance 
 unit member's participation in a strike or other labor action.  

    Subd. 5. Repealed, 1998 c 407 art 6 s 118 

    HIST: 1997 c 85 art 1 s 23; 1999 c 245 art 6 s 39-41; 2000 c 
 488 art 10 s 11,12 

     256J.35 Amount of assistance payment. 

    Except as provided in paragraphs (a) to (c), the amount of 
 an assistance payment is equal to the difference between the 
 MFIP standard of need or the Minnesota family wage level in 
 section 256J.24 and countable income. 

    (a) When MFIP eligibility exists for the month of 
 application, the amount of the assistance payment for the month 
 of application must be prorated from the date of application or 
 the date all other eligibility factors are met for that 
 applicant, whichever is later.  This provision applies when an 
 applicant loses at least one day of MFIP eligibility. 

    (b) MFIP overpayments to an assistance unit must be 
 recouped according to section 256J.38, subdivision 4. 

    (c) An initial assistance payment must not be made to an 
 applicant who is not eligible on the date payment is made. 

    HIST: 1997 c 85 art 1 s 24; 1998 c 407 art 6 s 69; 1999 c 245 
 art 6 s 42 

     256J.36 Allocation for unmet need of other household 
  members. 

    Except as prohibited in paragraphs (a) and (b), an 
 allocation of income is allowed from the caregiver's income to 
 meet the unmet need of an ineligible spouse or an ineligible 
 child under the age of 21 for whom the caregiver is financially 
 responsible who also lives with the caregiver.  That allocation 
 is allowed in an amount up to the difference between the MFIP 
 standard of need for the assistance unit when that ineligible 
 person is included in the assistance unit and the MFIP standard 
 of need for the assistance unit when the ineligible person is 
 not included in the assistance unit.  These allocations must be 
 deducted from the caregiver's counted earnings and from unearned 
 income subject to paragraphs (a) and (b). 

    (a) Income of a minor child in the assistance unit must not 
 be allocated to meet the need of an ineligible person, including 
 the child's parent, even when that parent is the payee of the 
 child's income. 

    (b) Income of a caregiver must not be allocated to meet the 
 needs of a disqualified person. 

    HIST: 1997 c 85 art 1 s 25; 1998 c 407 art 6 s 70; 1999 c 245 
 art 6 s 43 

     256J.37 Treatment of income and lump sums. 

    Subdivision 1.    Deemed income from ineligible household 
 members.  Unless otherwise provided under subdivision 1a or 
 1b, the income of ineligible household members must be deemed 
 after allowing the following disregards: 

    (1) the first 18 percent of the ineligible family member's 
 gross earned income; 

    (2) amounts the ineligible person actually paid to 
 individuals not living in the same household but whom the 
 ineligible person claims or could claim as dependents for 
 determining federal personal income tax liability; 

    (3) all payments made by the ineligible person according to 
 a court order for spousal support or the support of children not 
 living in the assistance unit's household, provided that, if 
 there has been a change in the financial circumstances of the 
 ineligible person since the support order was entered, the 
 ineligible person has petitioned for a modification of the 
 support order; and 

    (4) an amount for the needs of the ineligible person and 
 other persons who live in the household but are not included in 
 the assistance unit and are or could be claimed by an ineligible 
 person as dependents for determining federal personal income tax 
 liability.  This amount is equal to the difference between the 
 MFIP standard of need when the ineligible person is included in 
 the assistance unit and the MFIP standard of need when the 
 ineligible person is not included in the assistance unit. 

    Subd. 1a.    Deemed income from disqualified members.  
 The income of disqualified members must be deemed after allowing 
 the following disregards: 

    (1) the first 18 percent of the disqualified member's gross 
 earned income; 

    (2) amounts the disqualified member actually paid to 
 individuals not living in the same household but whom the 
 disqualified member claims or could claim as dependents for 
 determining federal personal income tax liability; 

    (3) all payments made by the disqualified member according 
 to a court order for spousal support or the support of children 
 not living in the assistance unit's household, provided that, if 
 there has been a change in the financial circumstances of the 
 disqualified member's legal obligation to pay support since the 
 support order was entered, the disqualified member has 
 petitioned for a modification of the support order; and 

    (4) an amount for the needs of other persons who live in 
 the household but are not included in the assistance unit and 
 are or could be claimed by the disqualified member as dependents 
 for determining federal personal income tax liability.  This 
 amount is equal to the difference between the MFIP standard of 
 need when the ineligible person is included in the assistance 
 unit and the MFIP standard of need when the ineligible person is 
 not included in the assistance unit.  An amount shall not be 
 allowed for the needs of a disqualified member. 

    Subd. 1b.    Deemed income from parents of minor 
 caregivers.  In households where minor caregivers live with a 
 parent or parents who do not receive MFIP, the income of the 
 parents must be deemed after allowing the following disregards: 

    (1) income of the parents equal to 200 percent of the 
 federal poverty guideline for a family size not including the 
 minor parent and the minor parent's child in the household 
 according to section 256J.21, subdivision 2, clause (43); 

    (2) 18 percent of the parents' gross earned income; 

    (3) amounts the parents actually paid to individuals not 
 living in the same household but whom the parents claim or could 
 claim as dependents for determining federal personal income tax 
 liability; and 

    (4) all payments made by parents according to a court order 
 for spousal support or the support of children not living in the 
 parent's household, provided that, if there has been a change in 
 the financial circumstances of the parent's legal obligation to 
 pay support since the support order was entered, the parents 
 have petitioned for a modification of the support order.  

    Subd. 2.    Deemed income and assets of sponsor of 
 noncitizens.  (a) If a noncitizen applies for or receives 
 MFIP, the county must deem the income and assets of the 
 noncitizen's sponsor and the sponsor's spouse as provided in 
 this paragraph and paragraph (b) or (c), whichever is 
 applicable.  The deemed income of a sponsor and the sponsor's 
 spouse is considered unearned income of the noncitizen.  The 
 deemed assets of a sponsor and the sponsor's spouse are 
 considered available assets of the noncitizen. 

    (b) The income and assets of a sponsor who signed an 
 affidavit of support under title IV, sections 421, 422, and 423, 
 of Public Law 104-193, the Personal Responsibility and Work 
 Opportunity Reconciliation Act of 1996, and the income and 
 assets of the sponsor's spouse, must be deemed to the noncitizen 
 to the extent required by those sections of Public Law 104-193. 

    (c) The income and assets of a sponsor and the sponsor's 
 spouse to whom the provisions of paragraph (b) do not apply must 
 be deemed to the noncitizen to the full extent allowed under 
 title V, section 5505, of Public Law 105-33, the Balanced Budget 
 Act of 1997. 

    Subd. 3.    Earned income of wage, salary, and contractual 
 employees.  The county agency must include gross earned income 
 less any disregards in the initial and monthly income test.  
 Gross earned income received by persons employed on a 
 contractual basis must be prorated over the period covered by 
 the contract even when payments are received over a lesser 
 period of time. 

    Subd. 3a.    Rental subsidies; unearned income.  (a) 
 Effective July 1, 2003, the county agency shall count $50 of the 
 value of public and assisted rental subsidies provided through 
 the Department of Housing and Urban Development (HUD) as 
 unearned income to the cash portion of the MFIP grant.  The full 
 amount of the subsidy must be counted as unearned income when 
 the subsidy is less than $50.  The income from this subsidy 
 shall be budgeted according to section 256J.34. 

    (b) The provisions of this subdivision shall not apply to 
 an MFIP assistance unit which includes a participant who is: 

    (1) age 60 or older; 

    (2) a caregiver who is suffering from an illness, injury, 
 or incapacity that has been certified by a qualified 
 professional when the illness, injury, or incapacity is expected 
 to continue for more than 30 days and prevents the person from 
 obtaining or retaining employment; or 

    (3) a caregiver whose presence in the home is required due 
 to the illness or incapacity of another member in the assistance 
 unit, a relative in the household, or a foster child in the 
 household when the illness or incapacity and the need for the 
 participant's presence in the home has been certified by a 
 qualified professional and is expected to continue for more than 
 30 days. 

    (c) The provisions of this subdivision shall not apply to 
 an MFIP assistance unit where the parental caregiver is an SSI 
 recipient. 

    (d) Prior to implementing this provision, the commissioner 
 must identify the MFIP participants subject to this provision 
 and provide written notice to these participants at least 30 
 days before the first grant reduction.  The notice must inform 
 the participant of the basis for the potential grant reduction, 
 the exceptions to the provision, if any, and inform the 
 participant of the steps necessary to claim an exception.  A 
 person who is found not to meet one of the exceptions to the 
 provision must be notified and informed of the right to a fair 
 hearing under section 256J.40.  The notice must also inform the 
 participant that the participant may be eligible for a rent 
 reduction resulting from a reduction in the MFIP grant and 
 encourage the participant to contact the local housing authority.

    Subd. 3b.    Treatment of Supplemental Security Income.  
 The county shall reduce the cash portion of the MFIP grant by up 
 to $125 for an MFIP assistance unit that includes one or more 
 SSI recipients who reside in the household, and who would 
 otherwise be included in the MFIP assistance unit under section 
 256J.24, subdivision 2, but are excluded solely due to the SSI 
 recipient status under section 256J.24, subdivision 3, paragraph 
 (a), clause (1).  If the SSI recipient or recipients receive 
 less than $125 of SSI, only the amount received shall be used in 
 calculating the MFIP cash assistance payment.  This provision 
 does not apply to relative caregivers who could elect to be 
 included in the MFIP assistance unit under section 256J.24, 
 subdivision 4, unless the caregiver's children or stepchildren 
 are included in the MFIP assistance unit. 

    Subd. 4.    Self-employment.  Self-employed individuals 
 are those who are responsible for their own work schedule and do 
 not have coverage under an employer's liability insurance or 
 workers' compensation.  Self-employed individuals generally work 
 for themselves rather than an employer.  However, individuals 
 employed in some types of services may be self-employed even if 
 they have an employer or work out of another's business 
 location.  For example, real estate sales people, individuals 
 who work for commission sales, manufacturer's representatives, 
 and independent contractors may be self-employed.  Self-employed 
 individuals may or may not have FICA deducted from the check 
 issued to them by an employer or another party. 

    Self-employed individuals may own a business singularly or 
 in partnership.  Individuals operating more than one 
 self-employment business may use the loss from one business to 
 offset self-employment income from another business.  A loss 
 from a self-employment business may not offset income earned 
 under subdivision 3. 

    Subd. 5.    Self-employment earnings.  The county agency 
 must determine self-employment income according to the following:

    (a) Subtract allowable business expenses from total gross 
 receipts.  Allowable business expenses include: 

    (1) interest on mortgages and loans; 

    (2) employee wages, except for persons who are part of the 
 assistance unit or whose income is deemed to the participant; 

    (3) FICA funds paid on employees' wages, payment of 
 employee workers' compensation, and unemployment benefits; 

    (4) livestock and veterinary or breeding fees; 

    (5) raw material; 

    (6) seed and fertilizer; 

    (7) maintenance and repairs that are not capital 
 expenditures; 

    (8) tax return preparation fees; 

    (9) license fees, professional fees, franchise fees, and 
 professional dues; 

    (10) tools and supplies that are not capital expenditures; 

    (11) fuel and transportation expenses other than fuel costs 
 covered by the flat rate transportation deduction; 

    (12) advertising costs; 

    (13) meals eaten when required to be away from the local 
 work site; 

    (14) property expenses such as rent, insurance, taxes, and 
 utilities; 

    (15) postage; 

    (16) purchase cost of inventory at time of sale; 

    (17) loss from another self-employment business; 

    (18) attorney fees allowed by the Internal Revenue Service; 
 and 

    (19) tuition for classes necessary to maintain or improve 
 job skills or required by law to maintain job status or salary 
 as allowed by the Internal Revenue Service. 

    (b) The county agency shall not allow a deduction for the 
 following expenses: 

    (1) purchases of capital assets; 

    (2) payments on the principals of loans for capital assets; 

    (3) depreciation; 

    (4) amortization; 

    (5) the wholesale costs of items purchased, processed, or 
 manufactured which are unsold inventory; 

    (6) transportation costs that exceed the maximum standard 
 mileage rate allowed for use of a personal car in the Internal 
 Revenue Code; 

    (7) costs, in any amount, for mileage between an 
 applicant's or participant's home and place of employment; 

    (8) salaries and other employment deductions made for 
 members of an assistance unit or persons who live in the 
 household for whom an employer is legally responsible; 

    (9) monthly expenses in excess of $71 for each roomer; 

    (10) monthly expenses in excess of the Thrifty Food Plan 
 amount for one person for each boarder.  For purposes of this 
 clause and clause (11), "Thrifty Food Plan" has the meaning 
 given it in Code of Federal Regulations; 

    (11) monthly expenses in excess of the roomer rate plus the 
 Thrifty Food Plan amount for one person for each 
 roomer-boarder.  If there is more than one boarder or 
 roomer-boarder, use the total number of boarders as the unit 
 size to determine the Thrifty Food Plan amount; 

    (12) an amount greater than actual expenses or two percent 
 of the estimated market value on a county tax assessment form, 
 whichever is greater, as a deduction for upkeep and repair 
 against rental income; 

    (13) expenses not allowed by the Internal Revenue Code; 

    (14) expenses in excess of 60 percent of gross receipts for 
 in-home child care unless a higher amount can be documented; and 

    (15) expenses that are reimbursed under the child and adult 
 care food program as authorized under the National School Lunch 
 Act, United States Code, title 42. 

    Subd. 6.    Self-employment budget period.  The 
 self-employment budget period begins in the month of application 
 or in the first month of self-employment.  Gross receipts must 
 be budgeted in the month received.  Expenses must be budgeted 
 against gross receipts in the month the expenses are paid, 
 except for paragraphs (a) to (c). 

    (a) The purchase cost of inventory items, including 
 materials which are processed or manufactured, must be deducted 
 as an expense at the time payment is received for the sale of 
 the inventory items. 

    (b) A 12-month rolling average based on clauses (1) to (3) 
 must be used to budget monthly income. 

    (1) For a business in operation for at least 12 months, the 
 county agency shall use the average monthly self-employment 
 income from the most current income tax report for the 12 months 
 before the month of application.  The county agency shall 
 determine a new monthly average by adding in the actual 
 self-employment income and expenses from the previous month and 
 dropping the first month from the averaging period. 

    (2) For a business in operation for less than 12 months, 
 the county agency shall compute the average for the number of 
 months the business has been in operation to determine a monthly 
 average.  When data are available for 12 or more months, average 
 monthly self-employment income is determined under clause (1). 

    (3) If the business undergoes a major change, the county 
 agency shall compute a new rolling average beginning with the 
 first month of the major change.  For the purpose of this 
 clause, major change means a change that affects the nature and 
 scale of the business and is not merely the result of normal 
 business fluctuations. 

    (c) For seasonal self-employment, the caregiver may choose 
 whether to use actual income in the month of receipt and 
 expenses in the month incurred or the rolling average method of 
 computation.  The choice must be made once per year at the time 
 of application or recertification.  For the purpose of this 
 paragraph, seasonal means working six or less months per year. 

    Subd. 7.    Farm income.  Farm income is the difference 
 between gross receipts and operating expenses.  The county 
 agency must not allow a deduction for expenses listed in 
 subdivision 5, paragraph (b).  Gross receipts include sales, 
 rents, subsidies, soil conservation payments, production derived 
 from livestock, and income from home-produced food.  

    Subd. 8.    Rental income.  The county agency must treat 
 income from rental property as earned or unearned income.  
 Income from rental property is unearned income unless the 
 assistance unit spends an average of ten hours per week on 
 maintenance or management of the property.  When the owner 
 spends more than ten hours per week on maintenance or repairs, 
 the earnings are considered self-employment earnings.  An amount 
 must be deducted for upkeep and repairs, as specified in 
 subdivision 5, paragraph (b), clause (12), real estate taxes, 
 insurance, utilities, and interest on principal payments.  When 
 the applicant or participant lives on the rental property, 
 expenses for upkeep, taxes, insurance, utilities, and interest 
 must be divided by the number of rooms to determine expense per 
 room and expenses deducted must be deducted only for the number 
 of rooms rented. 

    Subd. 9.    Unearned income.  (a) The county agency must 
 apply unearned income to the MFIP standard of need.  When 
 determining the amount of unearned income, the county agency 
 must deduct the costs necessary to secure payments of unearned 
 income.  These costs include legal fees, medical fees, and 
 mandatory deductions such as federal and state income taxes. 

    (b) The county agency must convert unearned income received 
 on a periodic basis to monthly amounts by prorating the income 
 over the number of months represented by the frequency of the 
 payments.  The county agency must begin counting the monthly 
 amount in the month the periodic payment is received and budget 
 it according to the assistance unit's budget cycle. 

    Subd. 10.    Treatment of lump sums.  (a) The county 
 agency must treat lump-sum payments as earned or unearned 
 income.  If the lump-sum payment is included in the category of 
 income identified in subdivision 9, it must be treated as 
 unearned income.  A lump sum is counted as income in the month 
 received and budgeted either prospectively or retrospectively 
 depending on the budget cycle at the time of receipt.  When an 
 individual receives a lump-sum payment, that lump sum must be 
 combined with all other earned and unearned income received in 
 the same budget month, and it must be applied according to 
 paragraphs (a) to (c).  A lump sum may not be carried over into 
 subsequent months. Any funds that remain in the third month 
 after the month of receipt are counted in the asset limit. 

    (b) For a lump sum received by an applicant during the 
 first two months, prospective budgeting is used to determine the 
 payment and the lump sum must be combined with other earned or 
 unearned income received and budgeted in that prospective month. 

    (c) For a lump sum received by a participant after the 
 first two months of MFIP eligibility, the lump sum must be 
 combined with other income received in that budget month, and 
 the combined amount must be applied retrospectively against the 
 applicable payment month. 

    (d) When a lump sum, combined with other income under 
 paragraphs (b) and (c), is less than the MFIP standard of need 
 for the appropriate payment month, the assistance payment must 
 be reduced according to the amount of the countable income.  
 When the countable income is greater than the MFIP standard or 
 family wage level, the assistance payment must be suspended for 
 the payment month. 

    HIST: 1997 c 85 art 1 s 26; 1997 c 203 art 12 s 11; 1998 c 407 
 art 6 s 71-75; 1999 c 107 s 66; 1999 c 245 art 6 s 44-48; 2000 c 
 343 s 4; 2000 c 488 art 10 s 13; 1Sp2001 c 9 art 10 s 21,66; 
 2002 c 379 art 1 s 113; 1Sp2003 c 14 art 1 s 45-47; 2004 c 288 
 art 4 s 37; 1Sp2005 c 4 art 3 s 14 

*   NOTE:  The amendment to subdivision 3b by Laws 2005, First 
*Special Session chapter 4, article 3, section 14, is effective 
*the first day of the second month after the date of approval by 
*the United States Department of Agriculture.  Laws 2005, First 
*Special Session chapter 4, article 3, section 14, the effective 
*date.

     256J.38 Correction of overpayments and underpayments. 

    Subdivision 1.    Scope of overpayment.  When a 
 participant or former participant receives an overpayment due to 
 agency, client, or ATM error, or due to assistance received 
 while an appeal is pending and the participant or former 
 participant is determined ineligible for assistance or for less 
 assistance than was received, the county agency must recoup or 
 recover the overpayment using the following methods:  

    (1) reconstruct each affected budget month and 
 corresponding payment month; 

    (2) use the policies and procedures that were in effect for 
 the payment month; and 

    (3) do not allow employment disregards in section 256J.21, 
 subdivision 3 or 4, in the calculation of the overpayment when 
 the unit has not reported within two calendar months following 
 the end of the month in which the income was received. 

    Subd. 2.    Notice of overpayment.  When a county agency 
 discovers that a participant or former participant has received 
 an overpayment for one or more months, the county agency must 
 notify the participant or former participant of the overpayment 
 in writing.  A notice of overpayment must specify the reason for 
 the overpayment, the authority for citing the overpayment, the 
 time period in which the overpayment occurred, the amount of the 
 overpayment, and the participant's or former participant's right 
 to appeal.  No limit applies to the period in which the county 
 agency is required to recoup or recover an overpayment according 
 to subdivisions 3 and 4. 

    Subd. 3.    Recovering overpayments.  A county agency 
 must initiate efforts to recover overpayments paid to a former 
 participant or caregiver.  Caregivers, both parental and 
 nonparental, and minor caregivers of an assistance unit at the 
 time an overpayment occurs, whether receiving assistance or not, 
 are jointly and individually liable for repayment of the 
 overpayment.  The county agency must request repayment from the 
 former participants and caregivers.  When an agreement for 
 repayment is not completed within six months of the date of 
 discovery or when there is a default on an agreement for 
 repayment after six months, the county agency must initiate 
 recovery consistent with chapter 270A, or section 541.05.  When 
 a person has been convicted of fraud under section 256.98, 
 recovery must be sought regardless of the amount of 
 overpayment.  When an overpayment is less than $35, and is not 
 the result of a fraud conviction under section 256.98, the 
 county agency must not seek recovery under this subdivision.  
 The county agency must retain information about all overpayments 
 regardless of the amount.  When an adult, adult caregiver, or 
 minor caregiver reapplies for assistance, the overpayment must 
 be recouped under subdivision 4. 

    Subd. 4.    Recouping overpayments from participants.  A 
 participant may voluntarily repay, in part or in full, an 
 overpayment even if assistance is reduced under this 
 subdivision, until the total amount of the overpayment is 
 repaid.  When an overpayment occurs due to fraud, the county 
 agency must recover from the overpaid assistance unit, including 
 child only cases, ten percent of the applicable standard or the 
 amount of the monthly assistance payment, whichever is less.  
 When a nonfraud overpayment occurs, the county agency must 
 recover from the overpaid assistance unit, including child only 
 cases, three percent of the MFIP standard of need or the amount 
 of the monthly assistance payment, whichever is less.  

    Subd. 5.    Recovering automatic teller machine errors.  
 For recipients receiving benefits via electronic benefit 
 transfer, if the overpayment is a result of an ATM dispensing 
 funds in error to the recipient, the agency may recover the ATM 
 error by immediately withdrawing funds from the recipient's 
 electronic benefit transfer account, up to the amount of the 
 error. 

    Subd. 6.    Scope of underpayments.  A county agency 
 must issue a corrective payment for underpayments made to a 
 participant or to a person who would be a participant if an 
 agency or client error causing the underpayment had not occurred.
 The county agency must issue the corrective payment according to 
 subdivision 8. 

    Subd. 7.    Identifying the underpayment.  An 
 underpayment may be identified by a county agency, by a 
 participant, by a former participant, or by a person who would 
 be a participant except for agency or client error. 

    Subd. 8.    Issuing corrective payments.  A county 
 agency must correct an underpayment within seven calendar days 
 after the underpayment has been identified, by adding the 
 corrective payment amount to the monthly assistance payment of 
 the participant or by issuing a separate payment to a 
 participant or former participant, or by reducing an existing 
 overpayment balance.  When an underpayment occurs in a payment 
 month and is not identified until the next payment month or 
 later, the county agency must first subtract the underpayment 
 from any overpayment balance before issuing the corrective 
 payment.  The county agency must not apply an underpayment in a 
 current payment month against an overpayment balance.  When an 
 underpayment in the current payment month is identified, the 
 corrective payment must be issued within seven calendar days 
 after the underpayment is identified. 

    Subd. 9.    Appeals.  A participant may appeal an 
 underpayment, an overpayment, and a reduction in an assistance 
 payment made to recoup the overpayment under subdivision 4.  The 
 participant's appeal of each issue must be timely under section 
 256.045.  When an appeal based on the notice issued under 
 subdivision 2 is not timely, the fact or the amount of that 
 overpayment must not be considered as a part of a later appeal, 
 including an appeal of a reduction in an assistance payment to 
 recoup that overpayment. 

    HIST: 1997 c 85 art 1 s 27; 1998 c 407 art 6 s 76; 1999 c 245 
 art 6 s 49; 1Sp2003 c 14 art 1 s 48,49 

     256J.39 Payment provisions; vendor payments. 

    Subdivision 1.    Payment policy.  The following 
 policies apply to monthly assistance payments and corrective 
 payments: 

    (1) Grant payments may be issued in the form of warrants 
 immediately redeemable in cash, electronic benefits transfer, or 
 by direct deposit into the recipient's account in a financial 
 institution. 

    (2) The commissioner shall mail assistance payment checks 
 to the address where a caregiver lives unless the county agency 
 approves an alternate arrangement. 

    (3) The commissioner shall mail monthly assistance payment 
 checks within time to allow postal service delivery to occur no 
 later than the first day of each month.  Monthly assistance 
 payment checks must be dated the first day of the month.  The 
 commissioner shall issue electronic benefits transfer payments 
 so that caregivers have access to the payments no later than the 
 first of the month.  

    (4) The commissioner shall issue replacement checks 
 promptly, but no later than seven calendar days after the 
 provisions of sections 16A.46; 256.01, subdivision 11; and 
 471.415 have been met. 

    (5) The commissioner, with the advance approval of the 
 commissioner of finance, may issue cash assistance grant 
 payments up to three days before the first day of each month, 
 including three days before the start of each state fiscal 
 year.  Of the money appropriated for cash assistance grant 
 payments for each fiscal year, up to three percent of the annual 
 state appropriation is available to the commissioner in the 
 previous fiscal year.  If that amount is insufficient for the 
 costs incurred, an additional amount of the appropriation as 
 needed may be transferred with the advance approval of the 
 commissioner of finance. 

    Subd. 2.    Protective and vendor payments.  
 Alternatives to paying assistance directly to a participant may 
 be used when: 

    (1) a county agency determines that a vendor payment is the 
 most effective way to resolve an emergency situation pertaining 
 to basic needs; 

    (2) a caregiver makes a written request to the county 
 agency asking that part or all of the assistance payment be 
 issued by protective or vendor payments for shelter and utility 
 service only.  The caregiver may withdraw this request in 
 writing at any time; 

    (3) the vendor payment is part of a sanction under section 
 256J.46; 

    (4) the vendor payment is required under section 256J.26; 

    (5) protective payments are required for minor parents 
 under section 256J.14; or 

    (6) a caregiver has exhibited a continuing pattern of 
 mismanaging funds as determined by the county agency. 

    The director of a county agency, or the director's 
 designee, must approve a proposal for protective or vendor 
 payment for money mismanagement when there is a pattern of 
 mismanagement under clause (6).  During the time a protective or 
 vendor payment is being made, the county agency must provide 
 services designed to alleviate the causes of the mismanagement. 

    The continuing need for and method of payment must be 
 documented and reviewed every 12 months.  The director of a 
 county agency or the director's designee must approve the 
 continuation of protective or vendor payments.  When it appears 
 that the need for protective or vendor payments will continue or 
 is likely to continue beyond two years because the county 
 agency's efforts have not resulted in sufficiently improved use 
 of assistance on behalf of the minor child, judicial appointment 
 of a legal guardian or other legal representative must be sought 
 by the county agency.  

    Subd. 3.    Choosing payees for protective or vendor 
 payments.  A county agency shall consult with a caregiver 
 regarding the selection of the form of payment, the selection of 
 a protective payee, and the distribution of the assistance 
 payment to meet the various costs incurred by the assistance 
 unit.  When choosing a protective payee, the county agency shall 
 notify the caregiver of a consultation date.  If the caregiver 
 fails to respond to the county agency's request for consultation 
 by the effective date on the notice, the county agency must 
 choose a protective payee for that payment month and subsequent 
 payment months until the caregiver responds to the agency's 
 request for consultation.  The county agency must notify the 
 caregiver of the right to appeal the determination that a 
 protective or vendor payment should be made or continued and to 
 appeal the selection of the payee.  If a county agency is not 
 able to find another protective payee, a county agency staff 
 member may serve as a protective payee.  The following persons 
 may not serve as protective payees:  a member of the county 
 board of commissioners; the county agency staff member 
 determining financial eligibility for the family; special 
 investigative or resource staff; the staff member handling 
 accounting or fiscal processes related to the participant; or a 
 landlord, grocer, or other vendor dealing directly with the 
 participant. 

    Subd. 4.    Discontinuing protective or vendor payments. 
  A county agency shall discontinue protective or vendor 
 payments in two years or in the month following the county 
 agency's failure to grant six-month approval to a money 
 management plan, whichever occurs first.  At least once every 12 
 months, a county agency shall review the performance of a 
 protective payee acting under subdivision 2, clause (3), to 
 determine whether a new payee should be selected.  When a 
 participant complains about the performance of a protective 
 payee, a review shall occur within 30 calendar days. 

    HIST: 1997 c 85 art 1 s 28; 1998 c 407 art 6 s 77; 1999 c 245 
 art 1 s 19; 1Sp2001 c 9 art 10 s 22; 2002 c 379 art 1 s 113; 
 1Sp2003 c 14 art 1 s 106 

     256J.395 Vendor payment of shelter costs and utilities. 

    Subdivision 1.    Vendor payment.  (a) Effective July 1, 
 1997, when a county is required to provide assistance to a 
 participant in vendor form for shelter costs and utilities under 
 this chapter, or chapter 256, 256D, or 256K, the cost of 
 utilities for a given family may be assumed to be: 

    (1) the average of the actual monthly cost of utilities for 
 that family for the prior 12 months at the family's current 
 residence, if applicable; 

    (2) the monthly plan amount, if any, set by the local 
 utilities for that family at the family's current residence; or 

    (3) the estimated monthly utility costs for the dwelling in 
 which the family currently resides. 

    (b) For purposes of this section, "utility" means any of 
 the following:  municipal water and sewer service; electric, 
 gas, or heating fuel service; or wood, if that is the heating 
 source. 

    (c) In any instance where a vendor payment for rent is 
 directed to a landlord not legally entitled to the payment, the 
 county social services agency shall immediately institute 
 proceedings to collect the amount of the vendored rent payment, 
 which shall be considered a debt under section 270A.03, 
 subdivision 5. 

    Subd. 2.    Vendor payment notification.  (a) When a 
 county agency is required to provide assistance to a participant 
 in vendor payment form for shelter costs or utilities under 
 subdivision 1, and the participant does not give the agency the 
 information needed to pay the vendor, the county agency shall 
 notify the participant of the intent to terminate assistance by 
 mail at least ten days before the effective date of the adverse 
 action. 

    (b) The notice of action shall include a request for 
 information about: 

    (1) the amount of the participant's shelter costs or 
 utilities; 

    (2) the due date of the shelter costs or utilities; and 

    (3) the name and address of the landlord, contract for deed 
 holder, mortgage company, and utility vendor. 

    (c) If the participant fails to provide the requested 
 information by the effective date of the adverse action, the 
 county must terminate the MFIP grant.  If the applicant or 
 participant verifies they do not have shelter costs or utility 
 obligations, the county shall not terminate assistance if the 
 assistance unit is otherwise eligible. 

    Subd. 3.    Discontinuing vendor payments due to dispute 
 with landlord.  The county agency shall discontinue vendor 
 payments for shelter costs imposed under this chapter when the 
 vendor payment interferes with the participant's right to 
 withhold rent due to a dispute with the participant's landlord 
 in accordance with federal, state, or local housing laws. 

    HIST: 1997 c 85 art 1 s 29; 1998 c 407 art 6 s 78; 1Sp2001 c 9 
 art 10 s 66 

     256J.396 Support from parents of minor caregivers living 
  apart. 

    Subdivision 1.    General provisions.  A minor caregiver 
 and the minor's dependent child living outside of the home of 
 the adult parent must meet the criteria in section 256J.14, to 
 be eligible for assistance in the MFIP program.  A parent who 
 lives outside the home of a minor child who is an unemancipated 
 minor caregiver of an assistance unit is financially responsible 
 for that minor caregiver unless the parent is a recipient of 
 public assistance, SSI, MSA, medical assistance, general 
 assistance, or general assistance medical care, and a court 
 order does not otherwise provide a support obligation. 

    Subd. 2.    Amount of support payment.  The amount of 
 support to be paid by a parent, except a parent specified in 
 subdivision 4, must be determined according to paragraphs (a) to 
 (f). 

    (a) A minor caregiver must provide information required by 
 the county agency to identify the whereabouts of the minor 
 caregiver's absent parent or parents. 

    (b) A county agency must notify an absent parent of the 
 parent's legal responsibility to support a minor caregiver and 
 shall request that the absent parent provide the following: 

    (1) the amount of the parent's earned and unearned income 
 for the previous tax year; 

    (2) the amount of the parent's earned and unearned income 
 for the current month; 

    (3) the number and names of dependents who are claimed or 
 could be claimed by the parent on federal income tax forms; 

    (4) the amount of annual medical bills paid by the parent; 

    (5) the amount of annual housing costs paid by the parent; 

    (6) the costs for utilities and repairs to the home which 
 are paid by the parent; and 

    (7) the amount of annual educational costs for family 
 members paid by the parent. 

    (c) When a parent of a minor caregiver does not provide the 
 information requested under paragraph (b), the county agency 
 must refer the matter to the county attorney.  Assistance to the 
 minor caregiver must not be denied, delayed, reduced, or ended 
 because of the lack of cooperation of the minor caregiver's 
 parent. 

    (d) When the information requested under paragraph (b) is 
 received by a county agency, the county agency must compare the 
 parent's income against the scale set forth below using the 
 conditions and procedures specified in paragraph (e). 

           Size of Family            Federal Poverty Guideline
                 1                          $ 9,288
                 2                           12,432
                 3                           15,576
                 4                           18,720
                 5                           21,864

 For each additional family member add $3,144. 

    (e) The parent's income is the parent's gross earned income 
 plus unearned income, determined by the methods in section 
 256J.21.  To determine family size, each person claimed or who 
 could be claimed by a parent as a dependent on federal income 
 tax forms, exclusive of the minor caregiver, must be included.  
 A deduction from income must be allowed for the amount that 
 medical, educational, and housing costs together exceed 30 
 percent of the parent's income.  When the amount of income, 
 after the allowable deduction, exceeds the annual income level 
 in paragraph (d), a parent is liable to pay one-third of the 
 excess for the annual support of the minor caregiver.  These 
 payments must be paid monthly to the minor caregiver or to the 
 county agency on behalf of the minor caregiver. 

    (f) A county agency must notify the parents of the minor 
 caregiver that they are liable for the amount of support 
 determined by the county agency as specified in paragraph (e).  
 When the support payment is received by the minor caregiver, it 
 must be treated as unearned income of the assistance unit.  When 
 the support payment is not received, or a lesser amount is 
 received in any payment month, the county agency must refer the 
 matter to the county attorney. 

    Subd. 3.    Reviews.  A county agency must review 
 financial responsibility every 12 months until minor caregivers 
 reach the age of 18 or are otherwise emancipated.  When a parent 
 reports a change in circumstances, the county agency must review 
 the required amount of payment within ten calendar days. 

    Subd. 4.    Parents under court order for support.  A 
 parent who is required under an existing court order issued 
 under some other authority in state or federal law to pay child 
 support for a minor caregiver is subject to the conditions of 
 that order in lieu of the requirements and contribution levels 
 in subdivision 2. 

    HIST: 1997 c 85 art 1 s 30; 1Sp2001 c 9 art 10 s 66 

     256J.40 Fair hearings. 

    Caregivers receiving a notice of intent to sanction or a 
 notice of adverse action that includes a sanction, reduction in 
 benefits, suspension of benefits, denial of benefits, or 
 termination of benefits may request a fair hearing.  A request 
 for a fair hearing must be submitted in writing to the county 
 agency or to the commissioner and must be mailed within 30 days 
 after a participant or former participant receives written 
 notice of the agency's action or within 90 days when a 
 participant or former participant shows good cause for not 
 submitting the request within 30 days.  A former participant who 
 receives a notice of adverse action due to an overpayment may 
 appeal the adverse action according to the requirements in this 
 section.  Issues that may be appealed are: 

    (1) the amount of the assistance payment; 

    (2) a suspension, reduction, denial, or termination of 
 assistance; 

    (3) the basis for an overpayment, the calculated amount of 
 an overpayment, and the level of recoupment; 

    (4) the eligibility for an assistance payment; and 

    (5) the use of protective or vendor payments under section 
 256J.39, subdivision 2, clauses (1) to (3). 

    Except for benefits issued under section 256J.95, a county 
 agency must not reduce, suspend, or terminate payment when an 
 aggrieved participant requests a fair hearing prior to the 
 effective date of the adverse action or within ten days of the 
 mailing of the notice of adverse action, whichever is later, 
 unless the participant requests in writing not to receive 
 continued assistance pending a hearing decision.  An appeal 
 request cannot extend benefits for the diversionary work program 
 under section 256J.95 beyond the four-month time limit.  
 Assistance issued pending a fair hearing is subject to recovery 
 under section 256J.38 when as a result of the fair hearing 
 decision the participant is determined ineligible for assistance 
 or the amount of the assistance received.  A county agency may 
 increase or reduce an assistance payment while an appeal is 
 pending when the circumstances of the participant change and are 
 not related to the issue on appeal.  The commissioner's order is 
 binding on a county agency.  No additional notice is required to 
 enforce the commissioner's order. 

    A county agency shall reimburse appellants for reasonable 
 and necessary expenses of attendance at the hearing, such as 
 child care and transportation costs and for the transportation 
 expenses of the appellant's witnesses and representatives to and 
 from the hearing.  Reasonable and necessary expenses do not 
 include legal fees.  Fair hearings must be conducted at a 
 reasonable time and date by an impartial referee employed by the 
 department.  The hearing may be conducted by telephone or at a 
 site that is readily accessible to persons with disabilities. 

    The appellant may introduce new or additional evidence 
 relevant to the issues on appeal.  Recommendations of the 
 appeals referee and decisions of the commissioner must be based 
 on evidence in the hearing record and are not limited to a 
 review of the county agency action. 

    HIST: 1997 c 85 art 1 s 31; 1Sp2003 c 14 art 1 s 50 

     256J.415 Notice of time limit 12 months prior to 
  60-month time limit expiring. 

    (a) The county agency shall mail a notice to each 
 assistance unit when the assistance unit has 12 months of TANF 
 assistance remaining and each month thereafter until the 
 60-month limit has expired.  The notice must be developed by the 
 commissioner of human services and must contain information 
 about the 60-month limit, the number of months the participant 
 has remaining, the hardship extension policy, and any other 
 information that the commissioner deems pertinent to an 
 assistance unit nearing the 60-month limit. 

    (b) For applicants who have less than 12 months remaining 
 in the 60-month time limit because the unit previously received 
 TANF assistance in Minnesota or another state, the county agency 
 shall notify the applicant of the number of months of TANF 
 remaining when the application is approved and begin the process 
 required in paragraph (a). 

    HIST: 1Sp2001 c 9 art 10 s 23; 2002 c 379 art 1 s 113; 2004 c 
 288 art 4 s 38 

     256J.42 60-month time limit; exemptions. 

    Subdivision 1.    Time limit.  (a) Except as otherwise 
 provided for in this section, an assistance unit in which any 
 adult caregiver has received 60 months of cash assistance funded 
 in whole or in part by the TANF block grant in this or any other 
 state or United States territory, or from a tribal TANF program, 
 MFIP, the AFDC program formerly codified in sections 256.72 to 
 256.87, or the family general assistance program formerly 
 codified in sections 256D.01 to 256D.23, funded in whole or in 
 part by state appropriations, is ineligible to receive MFIP.  
 Any cash assistance funded with TANF dollars in this or any 
 other state or United States territory, or from a tribal TANF 
 program, or MFIP assistance funded in whole or in part by state 
 appropriations, that was received by the unit on or after the 
 date TANF was implemented, including any assistance received in 
 states or United States territories of prior residence, counts 
 toward the 60-month limitation.  The 60-month limit applies to a 
 minor caregiver except under subdivision 5.  The 60-month time 
 period does not need to be consecutive months for this provision 
 to apply.  

    (b) The months before July 1998 in which individuals 
 received assistance as part of the field trials as an MFIP, 
 MFIP-R, or MFIP or MFIP-R comparison group family are not 
 included in the 60-month time limit. 

    Subd. 2. Repealed by amendment, 1998 c 407 art 6 s 79 

    Subd. 3.    Adults living in Indian country.  In 
 determining the number of months for which an adult has received 
 assistance under MFIP, the county agency must disregard any 
 month during which the adult lived in Indian country if during 
 the month at least 50 percent of the adults living in Indian 
 country were not employed. 

    Subd. 4.    Victims of family violence.  Any cash 
 assistance received by an assistance unit in a month when a 
 caregiver complied with a safety plan, an alternative employment 
 plan, or an employment plan under section 256J.521, subdivision 
 3, does not count toward the 60-month limitation on assistance. 

    Subd. 5.    Exemption for certain families.  (a) Any 
 cash assistance received by an assistance unit does not count 
 toward the 60-month limit on assistance during a month in which 
 the caregiver is age 60 or older, including months during which 
 the caregiver was exempt under section 256J.56, paragraph (a), 
 clause (1). 

    (b) From July 1, 1997, until the date MFIP is operative in 
 the caregiver's county of financial responsibility, any cash 
 assistance received by a caregiver who is complying with 
 Minnesota Statutes 1996, section 256.73, subdivision 5a, and 
 Minnesota Statutes 1998, section 256.736, if applicable, does 
 not count toward the 60-month limit on assistance.  Thereafter, 
 any cash assistance received by a minor caregiver who is 
 complying with the requirements of sections 256J.14 and 256J.54, 
 if applicable, does not count towards the 60-month limit on 
 assistance. 

    (c) Any diversionary assistance or emergency assistance 
 received prior to July 1, 2003, does not count toward the 
 60-month limit. 

    (d) Any cash assistance received by an 18- or 19-year-old 
 caregiver who is complying with an employment plan that includes 
 an education option under section 256J.54 does not count toward 
 the 60-month limit. 

    (e) Payments provided to meet short-term emergency needs 
 under section 256J.626 and diversionary work program benefits 
 provided under section 256J.95 do not count toward the 60-month 
 time limit. 

    Subd. 6.    Case review.  (a) Within 180 days, but not 
 less than 60 days, before the end of the participant's 60th 
 month on assistance, the county agency or job counselor must 
 review the participant's case to determine if the employment 
 plan is still appropriate or if the participant is exempt under 
 section 256J.56 from the employment and training services 
 component, and attempt to meet with the participant face-to-face.

    (b) During the face-to-face meeting, a county agency or the 
 job counselor must: 

    (1) inform the participant how many months of counted 
 assistance the participant has accrued and when the participant 
 is expected to reach the 60th month; 

    (2) explain the hardship extension criteria under section 
 256J.425 and what the participant should do if the participant 
 thinks a hardship extension applies; 

    (3) identify other resources that may be available to the 
 participant to meet the needs of the family; and 

    (4) inform the participant of the right to appeal the case 
 closure under section 256J.40. 

    (c) If a face-to-face meeting is not possible, the county 
 agency must send the participant a notice of adverse action as 
 provided in section 256J.31, subdivisions 4 and 5. 

    (d) Before a participant's case is closed under this 
 section, the county must ensure that: 

    (1) the case has been reviewed by the job counselor's 
 supervisor or the review team designated by the county to 
 determine if the criteria for a hardship extension, if 
 requested, were applied appropriately; and 

    (2) the county agency or the job counselor attempted to 
 meet with the participant face-to-face. 

    HIST: 1997 c 85 art 1 s 32; 1997 c 203 art 12 s 12; 1998 c 407 
 art 6 s 79; 1999 c 159 s 86,87; 1999 c 245 art 6 s 50,51; 2000 c 
 260 s 88; 1Sp2001 c 9 art 10 s 24-27,66; 2002 c 379 art 1 s 113; 1Sp2003 
 c 14 art 1 s 51-53 

     256J.425 Hardship extensions. 

    Subdivision 1.    Eligibility.  (a) To be eligible for a 
 hardship extension, a participant in an assistance unit subject 
 to the time limit under section 256J.42, subdivision 1, must be 
 in compliance in the participant's 60th counted month.  For 
 purposes of determining eligibility for a hardship extension, a 
 participant is in compliance in any month that the participant 
 has not been sanctioned. 

    (b) If one participant in a two-parent assistance unit is 
 determined to be ineligible for a hardship extension, the county 
 shall give the assistance unit the option of disqualifying the 
 ineligible participant from MFIP.  In that case, the assistance 
 unit shall be treated as a one-parent assistance unit and the 
 assistance unit's MFIP grant shall be calculated using the 
 shared household standard under section 256J.08, subdivision 82a.

    (c) Prior to denying an extension, the county must review 
 the sanction status and determine whether the sanction is 
 appropriate or if good cause exists under section 256J.57.  If 
 the sanction was inappropriately applied or the participant is 
 granted a good cause exception before the end of month 60, the 
 participant shall be considered for an extension. 

    Subd. 1a.    Review.  If a county grants a hardship 
 extension under this section, a county agency shall review the 
 case every six or 12 months, whichever is appropriate based on 
 the participant's circumstances and the extension category.  
 More frequent reviews shall be required if eligibility for an 
 extension is based on a condition that is subject to change in 
 less than six months. 

    Subd. 2.    Ill or incapacitated.  (a) An assistance 
 unit subject to the time limit in section 256J.42, subdivision 
 1, is eligible to receive months of assistance under a hardship 
 extension if the participant who reached the time limit belongs 
 to any of the following groups: 

    (1) participants who are suffering from an illness, injury, 
 or incapacity which has been certified by a qualified 
 professional when the illness, injury, or incapacity is expected 
 to continue for more than 30 days and prevents the person from 
 obtaining or retaining employment.  These participants must 
 follow the treatment recommendations of the qualified 
 professional certifying the illness, injury, or incapacity; 

    (2) participants whose presence in the home is required as 
 a caregiver because of the illness, injury, or incapacity of 
 another member in the assistance unit, a relative in the 
 household, or a foster child in the household when the illness 
 or incapacity and the need for a person to provide assistance in 
 the home has been certified by a qualified professional and is 
 expected to continue for more than 30 days; or 

    (3) caregivers with a child or an adult in the household 
 who meets the disability or medical criteria for home care 
 services under section 256B.0651, subdivision 1, paragraph (c), 
 or a home and community-based waiver services program under 
 chapter 256B, or meets the criteria for severe emotional 
 disturbance under section 245.4871, subdivision 6, or for 
 serious and persistent mental illness under section 245.462, 
 subdivision 20, paragraph (c).  Caregivers in this category are 
 presumed to be prevented from obtaining or retaining employment. 

    (b) An assistance unit receiving assistance under a 
 hardship extension under this subdivision may continue to 
 receive assistance as long as the participant meets the criteria 
 in paragraph (a), clause (1), (2), or (3). 

    Subd. 3.    Hard-to-employ participants.  An assistance 
 unit subject to the time limit in section 256J.42, subdivision 
 1, is eligible to receive months of assistance under a hardship 
 extension if the participant who reached the time limit belongs 
 to any of the following groups: 

    (1) a person who is diagnosed by a licensed physician, 
 psychological practitioner, or other qualified professional, as 
 mentally retarded or mentally ill, and that condition prevents 
 the person from obtaining or retaining unsubsidized employment; 

    (2) a person who: 

    (i) has been assessed by a vocational specialist or the 
 county agency to be unemployable for purposes of this 
 subdivision; or 

    (ii) has an IQ below 80 who has been assessed by a 
 vocational specialist or a county agency to be employable, but 
 not at a level that makes the participant eligible for an 
 extension under subdivision 4.  The determination of IQ level 
 must be made by a qualified professional.  In the case of a 
 non-English-speaking person:  (A) the determination must be made 
 by a qualified professional with experience conducting 
 culturally appropriate assessments, whenever possible; (B) the 
 county may accept reports that identify an IQ range as opposed 
 to a specific score; (C) these reports must include a statement 
 of confidence in the results; 

    (3) a person who is determined by a qualified professional 
 to be learning disabled, and the disability severely limits the 
 person's ability to obtain, perform, or maintain suitable 
 employment.  For purposes of the initial approval of a learning 
 disability extension, the determination must have been made or 
 confirmed within the previous 12 months.  In the case of a 
 non-English-speaking person:  (i) the determination must be made 
 by a qualified professional with experience conducting 
 culturally appropriate assessments, whenever possible; and (ii) 
 these reports must include a statement of confidence in the 
 results.  If a rehabilitation plan for a participant extended as 
 learning disabled is developed or approved by the county agency, 
 the plan must be incorporated into the employment plan.  
 However, a rehabilitation plan does not replace the requirement 
 to develop and comply with an employment plan under section 
 256J.521; or 

    (4) a person who has been granted a family violence waiver, 
 and who is complying with an employment plan under section 
 256J.521, subdivision 3.  

    Subd. 4.    Employed participants.  (a) An assistance 
 unit subject to the time limit under section 256J.42, 
 subdivision 1, is eligible to receive assistance under a 
 hardship extension if the participant who reached the time limit 
 belongs to: 

    (1) a one-parent assistance unit in which the participant 
 is participating in work activities for at least 30 hours per 
 week, of which an average of at least 25 hours per week every 
 month are spent participating in employment; 

    (2) a two-parent assistance unit in which the participants 
 are participating in work activities for at least 55 hours per 
 week, of which an average of at least 45 hours per week every 
 month are spent participating in employment; or 

    (3) an assistance unit in which a participant is 
 participating in employment for fewer hours than those specified 
 in clause (1), and the participant submits verification from a 
 qualified professional, in a form acceptable to the 
 commissioner, stating that the number of hours the participant 
 may work is limited due to illness or disability, as long as the 
 participant is participating in employment for at least the 
 number of hours specified by the qualified professional.  The 
 participant must be following the treatment recommendations of 
 the qualified professional providing the verification.  The 
 commissioner shall develop a form to be completed and signed by 
 the qualified professional, documenting the diagnosis and any 
 additional information necessary to document the functional 
 limitations of the participant that limit work hours.  If the 
 participant is part of a two-parent assistance unit, the other 
 parent must be treated as a one-parent assistance unit for 
 purposes of meeting the work requirements under this subdivision.

    (b) For purposes of this section, employment means: 

    (1) unsubsidized employment under section 256J.49, 
 subdivision 13, clause (1); 

    (2) subsidized employment under section 256J.49, 
 subdivision 13, clause (2); 

    (3) on-the-job training under section 256J.49, subdivision 
 13, clause (2); 

    (4) an apprenticeship under section 256J.49, subdivision 
 13, clause (1); 

    (5) supported work under section 256J.49, subdivision 13, 
 clause (2); 

    (6) a combination of clauses (1) to (5); or 

    (7) child care under section 256J.49, subdivision 13, 
 clause (7), if it is in combination with paid employment. 

    (c) If a participant is complying with a child protection 
 plan under chapter 260C, the number of hours required under the 
 child protection plan count toward the number of hours required 
 under this subdivision.  

    (d) The county shall provide the opportunity for subsidized 
 employment to participants needing that type of employment 
 within available appropriations. 

    (e) To be eligible for a hardship extension for employed 
 participants under this subdivision, a participant must be in 
 compliance for at least ten out of the 12 months the participant 
 received MFIP immediately preceding the participant's 61st month 
 on assistance.  If ten or fewer months of eligibility for TANF 
 assistance remain at the time the participant from another state 
 applies for assistance, the participant must be in compliance 
 every month.  

    (f) The employment plan developed under section 256J.521, 
 subdivision 2, for participants under this subdivision must 
 contain at least the minimum number of hours specified in 
 paragraph (a) for the purpose of meeting the requirements for an 
 extension under this subdivision.  The job counselor and the 
 participant must sign the employment plan to indicate agreement 
 between the job counselor and the participant on the contents of 
 the plan. 

    (g) Participants who fail to meet the requirements in 
 paragraph (a), without good cause under section 256J.57, shall 
 be sanctioned or permanently disqualified under subdivision 6.  
 Good cause may only be granted for that portion of the month for 
 which the good cause reason applies.  Participants must meet all 
 remaining requirements in the approved employment plan or be 
 subject to sanction or permanent disqualification.  

    (h) If the noncompliance with an employment plan is due to 
 the involuntary loss of employment, the participant is exempt 
 from the hourly employment requirement under this subdivision 
 for one month.  Participants must meet all remaining 
 requirements in the approved employment plan or be subject to 
 sanction or permanent disqualification.  This exemption is 
 available to each participant two times in a 12-month period. 

    Subd. 4a.    Hardship extension pending documentation.  
 If the documentation needed to determine if a participant is 
 eligible for a hardship extension under subdivision 2 or 3 is 
 not available by the 60th month, the county agency may extend 
 the participant pending receipt of the documentation if the 
 county believes the participant is likely to qualify for a 
 hardship extension and the participant is cooperating with 
 efforts to obtain the documentation.  If the participant is 
 found to be not eligible for an extension, the participant may 
 be responsible for an overpayment. 

    Subd. 5.    Accrual of certain exempt months.  (a) 
 Participants who meet the criteria in clause (1), (2), or (3) 
 and who are not eligible for assistance under a hardship 
 extension under subdivision 2, paragraph (a), clause (3), shall 
 be eligible for a hardship extension for a period of time equal 
 to the number of months that were counted toward the federal 
 60-month time limit while the participant was: 

    (1) a caregiver with a child or an adult in the household 
 who meets the disability or medical criteria for home care 
 services under section 256B.0651, subdivision 1, paragraph (c), 
 or a home and community-based waiver services program under 
 chapter 256B, or meets the criteria for severe emotional 
 disturbance under section 245.4871, subdivision 6, or for 
 serious and persistent mental illness under section 245.462, 
 subdivision 20, paragraph (c), who was subject to the 
 requirements in section 256J.561, subdivision 2; 

    (2) exempt under section 256J.56, paragraph (a), clause 
 (7); or 

    (3) exempt under section 256J.56, paragraph (a), clause 
 (3), and demonstrates at the time of the case review required 
 under section 256J.42, subdivision 6, that the participant met 
 the exemption criteria under section 256J.56, paragraph (a), 
 clause (7), during one or more months the participant was exempt 
 under section 256J.56, paragraph (a), clause (3).  Only months 
 during which the participant met the criteria under section 
 256J.56, paragraph (a), clause (7), shall be considered. 

    (b) A participant who received TANF assistance that counted 
 towards the federal 60-month time limit while the participant 
 met the state time limit exemption criteria under section 
 256J.42, subdivision 4 or 5, is eligible for assistance under a 
 hardship extension for a period of time equal to the number of 
 months that were counted toward the federal 60-month time limit 
 while the participant met the state time limit exemption 
 criteria under section 256J.42, subdivision 4 or 5. 

    (c) After the accrued months have been exhausted, the 
 county agency must determine if the assistance unit is eligible 
 for an extension under another extension category in section 
 256J.425, subdivision 2, 3, or 4.  

    (d) At the time of the case review, a county agency must 
 explain to the participant the basis for receiving a hardship 
 extension based on the accrual of exempt months.  The 
 participant must provide documentation necessary to enable the 
 county agency to determine whether the participant is eligible 
 to receive a hardship extension based on the accrual of exempt 
 months or authorize a county agency to verify the information. 

    (e) While receiving extended MFIP assistance under this 
 subdivision, a participant is subject to the MFIP policies that 
 apply to participants during the first 60 months of MFIP, unless 
 the participant is a member of a two-parent family in which one 
 parent is extended under subdivision 3 or 4.  For two-parent 
 families in which one parent is extended under subdivision 3 or 
 4, the sanction provisions in subdivision 6 shall apply. 

    Subd. 6.    Sanctions for extended cases.  (a) If one or 
 both participants in an assistance unit receiving assistance 
 under subdivision 3 or 4 are not in compliance with the 
 employment and training service requirements in sections 
 256J.521 to 256J.57, the sanctions under this subdivision 
 apply.  For a first occurrence of noncompliance, an assistance 
 unit must be sanctioned under section 256J.46, subdivision 1, 
 paragraph (c), clause (1).  For a second or third occurrence of 
 noncompliance, the assistance unit must be sanctioned under 
 section 256J.46, subdivision 1, paragraph (c), clause (2).  For 
 a fourth occurrence of noncompliance, the assistance unit is 
 disqualified from MFIP.  If a participant is determined to be 
 out of compliance, the participant may claim a good cause 
 exception under section 256J.57, however, the participant may 
 not claim an exemption under section 256J.56.  

    (b) If both participants in a two-parent assistance unit 
 are out of compliance at the same time, it is considered one 
 occurrence of noncompliance. 

    (c) When a parent in an extended two-parent assistance unit 
 who has not used 60 months of assistance is out of compliance 
 with the employment and training service requirements in 
 sections 256J.521 to 256J.57, sanctions must be applied as 
 specified in clauses (1) and (2). 

    (1) If the assistance unit is receiving assistance under 
 subdivision 3 or 4, the assistance unit is subject to the 
 sanction policy in this subdivision. 

    (2) If the assistance unit is receiving assistance under 
 subdivision 2, the assistance unit is subject to the sanction 
 policy in section 256J.46. 

    (d) If a two-parent assistance unit is extended under 
 subdivision 3 or 4, and a parent who has not reached the 
 60-month time limit is out of compliance with the employment and 
 training services requirements in sections 256J.521 to 256J.57 
 when the case is extended, the sanction in the 61st month is 
 considered the first sanction for the purposes of applying the 
 sanctions in this subdivision, except that the sanction amount 
 shall be 30 percent. 

    Subd. 7.    Status of disqualified participants.  (a) An 
 assistance unit that is disqualified under subdivision 6, 
 paragraph (a), may be approved for MFIP if the participant 
 complies with MFIP program requirements and demonstrates 
 compliance for up to one month.  No assistance shall be paid 
 during this period. 

    (b) An assistance unit that is disqualified under 
 subdivision 6, paragraph (a), and that reapplies under paragraph 
 (a) is subject to sanction under section 256J.46, subdivision 1, 
 paragraph (c), clause (1), for a first occurrence of 
 noncompliance.  A subsequent occurrence of noncompliance results 
 in a permanent disqualification. 

    (c) If one participant in a two-parent assistance unit 
 receiving assistance under a hardship extension under 
 subdivision 3 or 4 is determined to be out of compliance with 
 the employment and training services requirements under sections 
 256J.521 to 256J.57, the county shall give the assistance unit 
 the option of disqualifying the noncompliant participant from 
 MFIP.  In that case, the assistance unit shall be treated as a 
 one-parent assistance unit for the purposes of meeting the work 
 requirements under subdivision 4 and the assistance unit's MFIP 
 grant shall be calculated using the shared household standard 
 under section 256J.08, subdivision 82a.  An applicant who is 
 disqualified from receiving assistance under this paragraph may 
 reapply under paragraph (a).  If a participant is disqualified 
 from MFIP under this subdivision a second time, the participant 
 is permanently disqualified from MFIP. 

    (d) Prior to a disqualification under this subdivision, a 
 county agency must review the participant's case to determine if 
 the employment plan is still appropriate and attempt to meet 
 with the participant face-to-face.  If a face-to-face meeting is 
 not conducted, the county agency must send the participant a 
 notice of adverse action as provided in section 256J.31.  During 
 the face-to-face meeting, the county agency must: 

    (1) determine whether the continued noncompliance can be 
 explained and mitigated by providing a needed preemployment 
 activity, as defined in section 256J.49, subdivision 13, clause 
 (9); 

    (2) determine whether the participant qualifies for a good 
 cause exception under section 256J.57; 

    (3) inform the participant of the family violence waiver 
 criteria and make appropriate referrals if the waiver is 
 requested; 

    (4) inform the participant of the participant's sanction 
 status and explain the consequences of continuing noncompliance; 

    (5) identify other resources that may be available to the 
 participant to meet the needs of the family; and 

    (6) inform the participant of the right to appeal under 
 section 256J.40. 

    Subd. 8.    County extension request.  A county may make 
 a request to the commissioner of human services, and the 
 commissioner may grant, an extension for a category of 
 participants that are not extended under section 256J.425, 
 provided the new category of participants is consistent with the 
 existing extension policy in which an extension is provided to 
 participants whose MFIP requirements conflict with other 
 statutory requirements or obligations.  By January 15 of each 
 year, the commissioner must report to the chairs and ranking 
 minority members of the senate and house committees having 
 jurisdiction over health and human services the extensions that 
 were granted under this section during the previous calendar 
 year.  The legislature must act in order for the extensions to 
 continue.  If the legislature fails to act by the end of the 
 legislative session in which the extensions were reported, the 
 extensions granted under this section during the previous 
 calendar year expire on June 30 of that year. 

    HIST: 1Sp2001 c 9 art 10 s 28; 2002 c 374 art 10 s 9-12; 2002 
 c 379 art 1 s 113; 1Sp2003 c 14 art 1 s 54-60; 2004 c 288 art 4 
 s 39-42 

  256J.43 Repealed, 1Sp2001 c 9 art 10 s 67 

  256J.44 Repealed, 1Sp2001 c 9 art 10 s 67 

     256J.45 Orientation. 

    Subdivision 1.    County agency to provide orientation.  
 A county agency must provide a face-to-face orientation to each 
 MFIP caregiver unless the caregiver is: 

    (1) a single parent, or one parent in a two-parent family, 
 employed at least 35 hours per week; or 

    (2) a second parent in a two-parent family who is employed 
 for 20 or more hours per week provided the first parent is 
 employed at least 35 hours per week. 

 The county agency must inform caregivers who are not exempt 
 under clause (1) or (2) that failure to attend the orientation 
 is considered an occurrence of noncompliance with program 
 requirements, and will result in the imposition of a sanction 
 under section 256J.46.  If the client complies with the 
 orientation requirement prior to the first day of the month in 
 which the grant reduction is proposed to occur, the orientation 
 sanction shall be lifted. 

    Subd. 1a.    Pregnant and parenting minors.  Pregnant 
 and parenting minors who are complying with the provisions of 
 section 256J.54 are exempt from the requirement under 
 subdivision 1, however, the county agency must provide 
 information to the minor as required under section 256J.14. 

    Subd. 2.    General information.  The MFIP orientation 
 must consist of a presentation that informs caregivers of: 

    (1) the necessity to obtain immediate employment; 

    (2) the work incentives under MFIP, including the 
 availability of the federal earned income tax credit and the 
 Minnesota working family tax credit; 

    (3) the requirement to comply with the employment plan and 
 other requirements of the employment and training services 
 component of MFIP, including a description of the range of work 
 and training activities that are allowable under MFIP to meet 
 the individual needs of participants; 

    (4) the consequences for failing to comply with the 
 employment plan and other program requirements, and that the 
 county agency may not impose a sanction when failure to comply 
 is due to the unavailability of child care or other 
 circumstances where the participant has good cause under 
 subdivision 3; 

    (5) the rights, responsibilities, and obligations of 
 participants; 

    (6) the types and locations of child care services 
 available through the county agency; 

    (7) the availability and the benefits of the early 
 childhood health and developmental screening under sections 
 121A.16 to 121A.19; 123B.02, subdivision 16; and 123B.10; 

    (8) the caregiver's eligibility for transition year child 
 care assistance under section 119B.05; 

    (9) the availability of all health care programs, including 
 transitional medical assistance; 

    (10) the caregiver's option to choose an employment and 
 training provider and information about each provider, including 
 but not limited to, services offered, program components, job 
 placement rates, job placement wages, and job retention rates; 

    (11) the caregiver's option to request approval of an 
 education and training plan according to section 256J.53; 

    (12) the work study programs available under the higher 
 education system; and 

    (13) information about the 60-month time limit exemptions 
 under the family violence waiver and referral information about 
 shelters and programs for victims of family violence. 

    Subd. 3.    Good cause exemptions for not attending 
 orientation.  (a) The county agency shall not impose the 
 sanction under section 256J.46 if it determines that the 
 participant has good cause for failing to attend orientation.  
 Good cause exists when: 

    (1) appropriate child care is not available; 

    (2) the participant is ill or injured; 

    (3) a family member is ill and needs care by the 
 participant that prevents the participant from attending 
 orientation.  For a caregiver with a child or adult in the 
 household who meets the disability or medical criteria for home 
 care services under section 256B.0655, subdivision 1c, or a home 
 and community-based waiver services program under chapter 256B, 
 or meets the criteria for severe emotional disturbance under 
 section 245.4871, subdivision 6, or for serious and persistent 
 mental illness under section 245.462, subdivision 20, paragraph 
 (c), good cause also exists when an interruption in the 
 provision of those services occurs which prevents the 
 participant from attending orientation; 

    (4) the caregiver is unable to secure necessary 
 transportation; 

    (5) the caregiver is in an emergency situation that 
 prevents orientation attendance; 

    (6) the orientation conflicts with the caregiver's work, 
 training, or school schedule; or 

    (7) the caregiver documents other verifiable impediments to 
 orientation attendance beyond the caregiver's control.  

    (b) Counties must work with clients to provide child care 
 and transportation necessary to ensure a caregiver has every 
 opportunity to attend orientation. 

    HIST: 1997 c 85 art 1 s 35; 1998 c 397 art 11 s 3; 1998 c 407 
 art 6 s 81-83; 1999 c 86 art 1 s 59; 1999 c 245 art 6 s 53,54; 
 2000 c 488 art 10 s 14; 1Sp2001 c 9 art 10 s 29,30; 2002 c 379 
 art 1 s 113; 1Sp2003 c 14 art 1 s 61 

     256J.46 Sanctions. 

    Subdivision 1.    Participants not complying with program 
 requirements.  (a) A participant who fails without good cause 
 under section 256J.57 to comply with the requirements of this 
 chapter, and who is not subject to a sanction under subdivision 
 2, shall be subject to a sanction as provided in this 
 subdivision.  Prior to the imposition of a sanction, a county 
 agency shall provide a notice of intent to sanction under 
 section 256J.57, subdivision 2, and, when applicable, a notice 
 of adverse action as provided in section 256J.31. 

    (b) A sanction under this subdivision becomes effective the 
 month following the month in which a required notice is given.  
 A sanction must not be imposed when a participant comes into 
 compliance with the requirements for orientation under section 
 256J.45 prior to the effective date of the sanction.  A sanction 
 must not be imposed when a participant comes into compliance 
 with the requirements for employment and training services under 
 sections 256J.515 to 256J.57 ten days prior to the effective 
 date of the sanction.  For purposes of this subdivision, each 
 month that a participant fails to comply with a requirement of 
 this chapter shall be considered a separate occurrence of 
 noncompliance.  If both participants in a two-parent assistance 
 unit are out of compliance at the same time, it is considered 
 one occurrence of noncompliance.  

    (c) Sanctions for noncompliance shall be imposed as follows:

    (1) For the first occurrence of noncompliance by a 
 participant in an assistance unit, the assistance unit's grant 
 shall be reduced by ten percent of the MFIP standard of need for 
 an assistance unit of the same size with the residual grant paid 
 to the participant.  The reduction in the grant amount must be 
 in effect for a minimum of one month and shall be removed in the 
 month following the month that the participant returns to 
 compliance.  

    (2) For a second, third, fourth, fifth, or sixth occurrence 
 of noncompliance by a participant in an assistance unit, the 
 assistance unit's shelter costs shall be vendor paid up to the 
 amount of the cash portion of the MFIP grant for which the 
 assistance unit is eligible.  At county option, the assistance 
 unit's utilities may also be vendor paid up to the amount of the 
 cash portion of the MFIP grant remaining after vendor payment of 
 the assistance unit's shelter costs.  The residual amount of the 
 grant after vendor payment, if any, must be reduced by an amount 
 equal to 30 percent of the MFIP standard of need for an 
 assistance unit of the same size before the residual grant is 
 paid to the assistance unit.  The reduction in the grant amount 
 must be in effect for a minimum of one month and shall be 
 removed in the month following the month that the participant in 
 a one-parent assistance unit returns to compliance.  In a 
 two-parent assistance unit, the grant reduction must be in 
 effect for a minimum of one month and shall be removed in the 
 month following the month both participants return to 
 compliance.  The vendor payment of shelter costs and, if 
 applicable, utilities shall be removed six months after the 
 month in which the participant or participants return to 
 compliance.  If an assistance unit is sanctioned under this 
 clause, the participant's case file must be reviewed to 
 determine if the employment plan is still appropriate. 

    (d) For a seventh occurrence of noncompliance by a 
 participant in an assistance unit, or when the participants in a 
 two-parent assistance unit have a total of seven occurrences of 
 noncompliance, the county agency shall close the MFIP assistance 
 unit's financial assistance case, both the cash and food 
 portions, and redetermine the family's continued eligibility for 
 food support payments.  The MFIP case must remain closed for a 
 minimum of one full month.  Before the case is closed, the 
 county agency must review the participant's case to determine if 
 the employment plan is still appropriate and attempt to meet 
 with the participant face-to-face.  The participant may bring an 
 advocate to the face-to-face meeting.  If a face-to-face meeting 
 is not conducted, the county agency must send the participant a 
 written notice that includes the information required under 
 clause (1). 

    (1) During the face-to-face meeting, the county agency must:

    (i) determine whether the continued noncompliance can be 
 explained and mitigated by providing a needed preemployment 
 activity, as defined in section 256J.49, subdivision 13, clause 
 (9); 

    (ii) determine whether the participant qualifies for a good 
 cause exception under section 256J.57, or if the sanction is for 
 noncooperation with child support requirements, determine if the 
 participant qualifies for a good cause exemption under section 
 256.741, subdivision 10; 

    (iii) determine whether the participant qualifies for an 
 exemption under section 256J.56 or the work activities in the 
 employment plan are appropriate based on the criteria in section 
 256J.521, subdivision 2 or 3; 

    (iv) determine whether the participant qualifies for the 
 family violence waiver; 

    (v) inform the participant of the participant's sanction 
 status and explain the consequences of continuing noncompliance; 

    (vi) identify other resources that may be available to the 
 participant to meet the needs of the family; and 

    (vii) inform the participant of the right to appeal under 
 section 256J.40. 

    (2) If the lack of an identified activity or service can 
 explain the noncompliance, the county must work with the 
 participant to provide the identified activity. 

    (3) The grant must be restored to the full amount for which 
 the assistance unit is eligible retroactively to the first day 
 of the month in which the participant was found to lack 
 preemployment activities or to qualify for an exemption under 
 section 256J.56, a family violence waiver, or for a good cause 
 exemption under section 256.741, subdivision 10, or 256J.57. 

    (e) For the purpose of applying sanctions under this 
 section, only occurrences of noncompliance that occur after July 
 1, 2003, shall be considered.  If the participant is in 30 
 percent sanction in the month this section takes effect, that 
 month counts as the first occurrence for purposes of applying 
 the sanctions under this section, but the sanction shall remain 
 at 30 percent for that month. 

    (f) An assistance unit whose case is closed under paragraph 
 (d) or (g), may reapply for MFIP and shall be eligible if the 
 participant complies with MFIP program requirements and 
 demonstrates compliance for up to one month.  No assistance 
 shall be paid during this period. 

    (g) An assistance unit whose case has been closed for 
 noncompliance, that reapplies under paragraph (f), is subject to 
 sanction under paragraph (c), clause (2), for a first occurrence 
 of noncompliance.  Any subsequent occurrence of noncompliance 
 shall result in case closure under paragraph (d). 

    Subd. 1a. Repealed, 1Sp2001 c 9 art 10 s 67 

    Subd. 2.    Sanctions for refusal to cooperate with 
 support requirements.  The grant of an MFIP caregiver who 
 refuses to cooperate, as determined by the child support 
 enforcement agency, with support requirements under section 
 256.741, shall be subject to sanction as specified in this 
 subdivision and subdivision 1.  For a first occurrence of 
 noncooperation, the assistance unit's grant must be reduced by 
 30 percent of the applicable MFIP standard of need.  Subsequent 
 occurrences of noncooperation shall be subject to sanction under 
 subdivision 1, paragraphs (c), clause (2), and (d).  The 
 residual amount of the grant, if any, must be paid to the 
 caregiver.  A sanction under this subdivision becomes effective 
 the first month following the month in which a required notice 
 is given.  A sanction must not be imposed when a caregiver comes 
 into compliance with the requirements under section 256.741 
 prior to the effective date of the sanction.  The sanction shall 
 be removed in the month following the month that the caregiver 
 cooperates with the support requirements.  Each month that an 
 MFIP caregiver fails to comply with the requirements of section 
 256.741 must be considered a separate occurrence of 
 noncompliance for the purpose of applying sanctions under 
 subdivision 1, paragraphs (c), clause (2), and (d).  

    Subd. 2a.    Dual sanctions.  (a) Notwithstanding the 
 provisions of subdivisions 1 and 2, for a participant subject to 
 a sanction for refusal to comply with child support requirements 
 under subdivision 2 and subject to a concurrent sanction for 
 refusal to cooperate with other program requirements under 
 subdivision 1, sanctions shall be imposed in the manner 
 prescribed in this subdivision. 

    Any vendor payment of shelter costs or utilities under this 
 subdivision must remain in effect for six months after the month 
 in which the participant is no longer subject to sanction under 
 subdivision 1. 

    (b) If the participant was subject to sanction for: 

    (i) noncompliance under subdivision 1 before being subject 
 to sanction for noncooperation under subdivision 2; or 

    (ii) noncooperation under subdivision 2 before being 
 subject to sanction for noncompliance under subdivision 1, the 
 participant is considered to have a second occurrence of 
 noncompliance and shall be sanctioned as provided in subdivision 
 1, paragraph (c), clause (2).  Each subsequent occurrence of 
 noncompliance shall be considered one additional occurrence and 
 shall be subject to the applicable level of sanction under 
 subdivision 1.  The requirement that the county conduct a review 
 as specified in subdivision 1, paragraph (d), remains in effect. 

    (c) A participant who first becomes subject to sanction 
 under both subdivisions 1 and 2 in the same month is subject to 
 sanction as follows: 

    (i) in the first month of noncompliance and noncooperation, 
 the participant's grant must be reduced by 30 percent of the 
 applicable MFIP standard of need, with any residual amount paid 
 to the participant; 

    (ii) in the second and subsequent months of noncompliance 
 and noncooperation, the participant shall be subject to the 
 applicable level of sanction under subdivision 1. 

    The requirement that the county conduct a review as 
 specified in subdivision 1, paragraph (d), remains in effect. 

    (d) A participant remains subject to sanction under 
 subdivision 2 if the participant: 

    (i) returns to compliance and is no longer subject to 
 sanction for noncompliance with section 256J.45 or sections 
 256J.515 to 256J.57; or 

    (ii) has the sanction for noncompliance with section 
 256J.45 or sections 256J.515 to 256J.57 removed upon completion 
 of the review under subdivision 1, paragraph (e). 

    A participant remains subject to the applicable level of 
 sanction under subdivision 1 if the participant cooperates and 
 is no longer subject to sanction under subdivision 2. 

    HIST: 1997 c 85 art 1 s 36; 1997 c 245 art 4 s 2; 1998 c 407 
 art 6 s 84-86; 1999 c 245 art 6 s 55-57; 1Sp2001 c 9 art 10 s 
 31,32; 2002 c 379 art 1 s 113; 1Sp2003 c 14 art 1 s 62-64,106; 
 2004 c 288 art 4 s 43 

  256J.462 Repealed, 1Sp2003 c 14 art 1 s 107 

  256J.47 Repealed, 1Sp2003 c 14 art 1 s 107 

  256J.48 Repealed, 1Sp2003 c 14 art 1 s 107 

     256J.49 Employment and training services; definitions. 

    Subdivision 1.    Scope.  The terms used in sections 
 256J.50 to 256J.72 have the meanings given them in this section. 

    Subd. 1a. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 2. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 3.    Employment and training services.  
 "Employment and training services" means programs, activities 
 and services that are designed to assist participants in 
 obtaining and retaining employment. 

    Subd. 4.    Employment and training service provider.  
 "Employment and training service provider" means: 

    (1) a public, private, or nonprofit agency with which a 
 county has contracted to provide employment and training 
 services and which is included in the county's service agreement 
 submitted under section 256J.626, subdivision 4; or 

    (2) a county agency, if the county has opted to provide 
 employment and training services and the county has indicated 
 that fact in the service agreement submitted under section 
 256J.626, subdivision 4. 

    Notwithstanding section 116L.871, an employment and training 
 services provider meeting this definition may deliver employment 
 and training services under this chapter. 

    Subd. 5.    Employment plan.  "Employment plan" means a 
 plan developed by the job counselor and the participant which 
 identifies the participant's most direct path to unsubsidized 
 employment, lists the specific steps that the caregiver will 
 take on that path, and includes a timetable for the completion 
 of each step.  The plan should also identify any subsequent 
 steps that support long-term economic stability.  For 
 participants who request and qualify for a family violence 
 waiver, an employment plan must be developed by the job 
 counselor and the participant, and in consultation with a person 
 trained in domestic violence and follow the employment plan 
 provisions in section 256J.521, subdivision 3. 

    Subd. 6. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 6a.    Functional work literacy.  "Functional work 
 literacy" means an intensive English as a second language 
 program that is work focused and offers at least 20 hours of 
 class time per week. 

    Subd. 7. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 8.    Job counselor.  "Job counselor" means a 
 staff person employed by or under contract with the employment 
 and training services provider who delivers services as 
 specified in sections 256J.50 to 256J.55. 

    Subd. 9.    Participant.  "Participant" means a 
 recipient of MFIP assistance who participates or is required to 
 participate in employment and training services under sections 
 256J.515 to 256J.57 and 256J.95. 

    Subd. 10.    Provider.  "Provider" means an employment 
 and training service provider. 

    Subd. 11. Repealed, 1Sp2001 c 9 art 10 s 67 

    Subd. 12.    Suitable employment.  "Suitable employment" 
 means employment that: 

    (1) is within the participant's physical and mental 
 abilities; 

    (2) pays hourly gross wages of not less than the applicable 
 state or federal minimum wage; 

    (3) meets health and safety standards set by federal, state 
 and county agencies; and 

    (4) complies with federal, state, and local 
 antidiscrimination laws. 

    Subd. 12a.    Supported work.  "Supported work" means a 
 subsidized or unsubsidized work experience placement with a 
 public or private sector employer, which may include services 
 such as individualized supervision and job coaching to support 
 the participant on the job. 

    Subd. 13.    Work activity.  "Work activity" means any 
 activity in a participant's approved employment plan that leads 
 to employment.  For purposes of the MFIP program, this includes 
 activities that meet the definition of work activity under the 
 participation requirements of TANF.  Work activity includes: 

    (1) unsubsidized employment, including work study and paid 
 apprenticeships or internships; 

    (2) subsidized private sector or public sector employment, 
 including grant diversion as specified in section 256J.69, 
 on-the-job training as specified in section 256J.66, the 
 self-employment investment demonstration program (SEID) as 
 specified in section 256J.65, paid work experience, and 
 supported work when a wage subsidy is provided; 

    (3) unpaid work experience, including community service, 
 volunteer work, the community work experience program as 
 specified in section 256J.67, unpaid apprenticeships or 
 internships, and supported work when a wage subsidy is not 
 provided; 

    (4) job search including job readiness assistance, job 
 clubs, job placement, job-related counseling, and job retention 
 services; 

    (5) job readiness education, including English as a second 
 language (ESL) or functional work literacy classes as limited by 
 the provisions of section 256J.531, subdivision 2, general 
 educational development (GED) course work, high school 
 completion, and adult basic education as limited by the 
 provisions of section 256J.531, subdivision 1; 

    (6) job skills training directly related to employment, 
 including education and training that can reasonably be expected 
 to lead to employment, as limited by the provisions of section 
 256J.53; 

    (7) providing child care services to a participant who is 
 working in a community service program; 

    (8) activities included in the employment plan that is 
 developed under section 256J.521, subdivision 3; and 

    (9) preemployment activities including chemical and mental 
 health assessments, treatment, and services; learning 
 disabilities services; child protective services; family 
 stabilization services; or other programs designed to enhance 
 employability. 

    HIST: 1997 c 85 art 1 s 39; 1997 c 200 art 6 s 1 1998 c 407 
 art 6 s 90; 2000 c 488 art 10 s 16; 1Sp2001 c 9 art 10 s 
 35-37,66; 2002 c 379 art 1 s 113; 1Sp2003 c 14 art 1 s 65-70; 2004 c 206 
 s 52; 
 2004 c 288 art 4 s 44 

     256J.50 County duties. 

    Subdivision 1.    Employment and training services 
 component of MFIP.  (a) Each county must develop and provide 
 an employment and training services component which is designed 
 to put participants on the most direct path to unsubsidized 
 employment.  Participation in these services is mandatory for 
 all MFIP caregivers, unless the caregiver is exempt under 
 section 256J.56. 

    (b) A county must provide employment and training services 
 under sections 256J.515 to 256J.74 within 30 days after the 
 caregiver is determined eligible for MFIP, or within ten days 
 when the caregiver participated in the diversionary work program 
 under section 256J.95 within the past 12 months. 

    Subd. 2. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 3. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 3a. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 4.    Service providing agencies.  Unless the 
 provisions of subdivision 8 apply, a county must select at least 
 two employment and training service providers.  A county may opt 
 to provide services on its own as one of these providers. 

    Subd. 5. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 6.    Explanatory materials required.  The county 
 must: 

    (1) explain to applicants and recipients and provide 
 explanatory materials regarding the relationship between the 
 60-month time limit on assistance funded with TANF dollars and 
 the receipt of various benefits, including cash assistance, food 
 stamps or food support, medical assistance, and child care 
 assistance; and 

    (2) provide assistance to applicants and recipients to 
 enable them to minimize the use of their 60 allowable months of 
 TANF-funded assistance.  

    Subd. 7. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 8.    County duty to ensure employment and training 
 choices for participants.  Each county, or group of counties 
 working cooperatively, shall make available to participants the 
 choice of at least two employment and training service providers 
 as defined under section 256J.49, subdivision 4, except in 
 counties utilizing workforce centers that use multiple 
 employment and training services, offer multiple services 
 options under a collaborative effort and can document that 
 participants have choice among employment and training services 
 designed to meet specialized needs. 

    Subd. 9.    Exception; financial hardship.  
 Notwithstanding subdivision 8, a county that explains in the 
 service agreement required under section 256J.626, subdivision 
 4, that the provision of alternative employment and training 
 service providers would result in financial hardship for the 
 county is not required to make available more than one 
 employment and training provider. 

    Subd. 10.    Required notification to victims of family 
 violence.  (a) County agencies and their contractors must 
 provide universal notification to all applicants and recipients 
 of MFIP that: 

    (1) referrals to counseling and supportive services are 
 available for victims of family violence; 

    (2) nonpermanent resident battered individuals married to 
 United States citizens or permanent residents may be eligible to 
 petition for permanent residency under the federal Violence 
 Against Women Act, and that referrals to appropriate legal 
 services are available; 

    (3) victims of family violence are exempt from the 60-month 
 limit on assistance if they are complying with an employment 
 plan under section 256J.521, subdivision 3; and 

    (4) victims of family violence may choose to have regular 
 work requirements waived while the individual is complying with 
 an employment plan under section 256J.521, subdivision 3.  

    (b) If an employment plan under section 256J.521, 
 subdivision 3, is denied, the county or a job counselor must 
 provide reasons why the plan is not approved and document how 
 the denial of the plan does not interfere with the safety of the 
 participant or children. 

    Notification must be in writing and orally at the time of 
 application and recertification, when the individual is referred 
 to the title IV-D child support agency, and at the beginning of 
 any job training or work placement assistance program. 

    Subd. 11.    Coordination.  The county agency and the 
 county agency's employment and training providers must consult 
 and coordinate with other providers of employment and training 
 services to identify existing resources, in order to prevent 
 duplication of services, to assure that other programs' services 
 are available to enable participants to achieve 
 self-sufficiency, and to assure that costs for these other 
 services for which participants are eligible are not incurred by 
 MFIP.  At a minimum, the county agency and its providers must 
 coordinate with Jobs Training and Partnership Act providers and 
 with any other relevant employment, training, and education 
 programs in the county. 

    Subd. 12.    Access to persons trained in domestic 
 violence.  In a county where there is no staff person who is 
 trained in domestic violence, as that term is defined in section 
 256J.08, subdivision 67a, the county must work with the nearest 
 organization that is designated as providing services to victims 
 of domestic violence to develop a process, which ensures that 
 domestic violence victims have access to a person trained in 
 domestic violence. 

    HIST: 1997 c 85 art 1 s 40; 1998 c 407 art 6 s 91-93; 1999 c 
 159 s 89; 1999 c 245 art 6 s 61; 2000 c 488 art 10 s 17,18; 
 1Sp2001 c 9 art 10 s 38-41,66; 2002 c 379 art 1 s 113; 1Sp2003 c 
 14 art 1 s 71-73,106 

     256J.51 Employment and training service provider; 
  alternate approval process. 

    Subdivision 1.    Provider application.  An employment 
 and training service provider that is not included in a county's 
 service agreement under section 256J.626, subdivision 4, because 
 the county has demonstrated financial hardship under section 
 256J.50, subdivision 9, may appeal its exclusion to the 
 commissioner of employment and economic development under this section. 

    Subd. 2.    Appeal; alternate approval.  (a) An 
 employment and training service provider that is not included by 
 a county agency in the service agreement under section 256J.626, 
 subdivision 4, and that meets the criteria in paragraph (b), may 
 appeal its exclusion to the commissioner of employment and economic 
 development, 
 and may request alternative approval by the commissioner of 
 employment and economic development to provide services in the county.  

    (b) An employment and training services provider that is 
 requesting alternative approval must demonstrate to the 
 commissioner that the provider meets the standards specified in 
 section 116L.871, subdivision 1, paragraph (b), except that the 
 provider's past experience may be in services and programs 
 similar to those specified in section 116L.871, subdivision 1, 
 paragraph (b). 

    Subd. 3.    Commissioner's review.  (a) The commissioner 
 must act on a request for alternative approval under this 
 section within 30 days of the receipt of the request.  If after 
 reviewing the provider's request, and the county's service 
 agreement submitted under section 256J.626, subdivision 4, the 
 commissioner determines that the provider meets the criteria 
 under subdivision 2, paragraph (b), and that approval of the 
 provider would not cause financial hardship to the county, the 
 county must submit a revised service agreement under subdivision 
 4 that includes the approved provider.  

    (b) If the commissioner determines that the approval of the 
 provider would cause financial hardship to the county, the 
 commissioner must notify the provider and the county of this 
 determination.  The alternate approval process under this 
 section shall be closed to other requests for alternate approval 
 to provide employment and training services in the county for up 
 to 12 months from the date that the commissioner makes a 
 determination under this paragraph. 

    Subd. 4.    Revised service agreement required.  The 
 commissioner of employment and economic development must notify the 
 county agency 
 when the commissioner grants an alternative approval to an 
 employment and training service provider under subdivision 2.  
 Upon receipt of the notice, the county agency must submit a 
 revised service agreement under section 256J.626, subdivision 4, 
 that includes the approved provider.  The county has 90 days 
 from the receipt of the commissioner's notice to submit the 
 revised service agreement. 

    Subd. 5.    Review not required.  Notwithstanding 
 subdivision 3, once a county meets the requirements of section 
 256J.50, subdivision 8, the commissioner may, but is not 
 required to, act on a request by an employment and training 
 services provider for alternative approval in that county. 

    HIST: 1997 c 85 art 1 s 41; 1Sp2003 c 14 art 1 s 74-77; 2004 c 206 s 
 52 

     256J.515 Overview of employment and training services. 

    During the first meeting with participants, job counselors 
 must ensure that an overview of employment and training services 
 is provided that: 

    (1) stresses the necessity and opportunity of immediate 
 employment; 

    (2) outlines the job search resources offered; 

    (3) outlines education or training opportunities available; 

    (4) describes the range of work activities, including 
 activities under section 256J.49, subdivision 13, clause (18), 
 that are allowable under MFIP to meet the individual needs of 
 participants; 

    (5) explains the requirements to comply with an employment 
 plan; 

    (6) explains the consequences for failing to comply; 

    (7) explains the services that are available to support job 
 search and work and education; 

    (8) provides referral information about shelters and 
 programs for victims of family violence and the time limit 
 exemption for family violence victims; and 

    (9) explains the probationary employment periods new 
 employees may serve after being hired and any assistance with 
 job retention services that may be available. 

    Failure to attend the overview of employment and training 
 services without good cause results in the imposition of a 
 sanction under section 256J.46. 

    An applicant who requests and qualifies for a family 
 violence waiver is exempt from attending a group overview.  
 Information usually presented in an overview must be covered 
 during the development of an employment plan under section 
 256J.521, subdivision 3. 

    HIST: 1997 c 85 art 1 s 42; 1998 c 407 art 6 s 94; 1999 c 245 
 art 6 s 62; 1Sp2001 c 9 art 10 s 42; 2002 c 379 art 1 s 113; 
 1Sp2003 c 14 art 1 s 106; 2004 c 288 art 4 s 45; 1Sp2005 c 4 art 
 3 s 15 

  256J.52 Repealed, 1Sp2003 c 14 art 1 s 107 

     256J.521 Assessment; employment plans. 

    Subdivision 1.    Assessments.  (a) For purposes of MFIP 
 employment services, assessment is a continuing process of 
 gathering information related to employability for the purpose 
 of identifying both participant's strengths and strategies for 
 coping with issues that interfere with employment.  The job 
 counselor must use information from the assessment process to 
 develop and update the employment plan under subdivision 2 or 3, 
 as appropriate, and to determine whether the participant 
 qualifies for a family violence waiver including an employment 
 plan under subdivision 3. 

    (b) The scope of assessment must cover at least the 
 following areas: 

    (1) basic information about the participant's ability to 
 obtain and retain employment, including:  a review of the 
 participant's education level; interests, skills, and abilities; 
 prior employment or work experience; transferable work skills; 
 child care and transportation needs; 

    (2) identification of personal and family circumstances 
 that impact the participant's ability to obtain and retain 
 employment, including:  any special needs of the children, the 
 level of English proficiency, family violence issues, and any 
 involvement with social services or the legal system; 

    (3) the results of a mental and chemical health screening 
 tool designed by the commissioner and results of the brief 
 screening tool for special learning needs.  Screening tools for 
 mental and chemical health and special learning needs must be 
 approved by the commissioner and may only be administered by job 
 counselors or county staff trained in using such screening 
 tools.  The commissioner shall work with county agencies to 
 develop protocols for referrals and follow-up actions after 
 screens are administered to participants, including guidance on 
 how employment plans may be modified based upon outcomes of 
 certain screens.  Participants must be told of the purpose of 
 the screens and how the information will be used to assist the 
 participant in identifying and overcoming barriers to 
 employment.  Screening for mental and chemical health and 
 special learning needs must be completed by participants who are 
 unable to find suitable employment after six weeks of job search 
 under subdivision 2, paragraph (b), and participants who are 
 determined to have barriers to employment under subdivision 2, 
 paragraph (d).  Failure to complete the screens will result in 
 sanction under section 256J.46; and 

    (4) a comprehensive review of participation and progress 
 for participants who have received MFIP assistance and have not 
 worked in unsubsidized employment during the past 12 months.  
 The purpose of the review is to determine the need for 
 additional services and supports, including placement in 
 subsidized employment or unpaid work experience under section 
 256J.49, subdivision 13. 

    (c) Information gathered during a caregiver's participation 
 in the diversionary work program under section 256J.95 must be 
 incorporated into the assessment process. 

    (d) The job counselor may require the participant to 
 complete a professional chemical use assessment to be performed 
 according to the rules adopted under section 254A.03, 
 subdivision 3, including provisions in the administrative rules 
 which recognize the cultural background of the participant, or a 
 professional psychological assessment as a component of the 
 assessment process, when the job counselor has a reasonable 
 belief, based on objective evidence, that a participant's 
 ability to obtain and retain suitable employment is impaired by 
 a medical condition.  The job counselor may assist the 
 participant with arranging services, including child care 
 assistance and transportation, necessary to meet needs 
 identified by the assessment.  Data gathered as part of a 
 professional assessment must be classified and disclosed 
 according to the provisions in section 13.46. 

    Subd. 2.    Employment plan; contents.  (a) Based on the 
 assessment under subdivision 1, the job counselor and the 
 participant must develop an employment plan that includes 
 participation in activities and hours that meet the requirements 
 of section 256J.55, subdivision 1.  The purpose of the 
 employment plan is to identify for each participant the most 
 direct path to unsubsidized employment and any subsequent steps 
 that support long-term economic stability.  The employment plan 
 should be developed using the highest level of activity 
 appropriate for the participant.  Activities must be chosen from 
 clauses (1) to (6), which are listed in order of preference.  
 Notwithstanding this order of preference for activities, 
 priority must be given for activities related to a family 
 violence waiver when developing the employment plan.  The 
 employment plan must also list the specific steps the 
 participant will take to obtain employment, including steps 
 necessary for the participant to progress from one level of 
 activity to another, and a timetable for completion of each 
 step.  Levels of activity include: 

    (1) unsubsidized employment; 

    (2) job search; 

    (3) subsidized employment or unpaid work experience; 

    (4) unsubsidized employment and job readiness education or 
 job skills training; 

    (5) unsubsidized employment or unpaid work experience and 
 activities related to a family violence waiver or preemployment 
 needs; and 

    (6) activities related to a family violence waiver or 
 preemployment needs. 

    (b) Participants who are determined to possess sufficient 
 skills such that the participant is likely to succeed in 
 obtaining unsubsidized employment must job search at least 30 
 hours per week for up to six weeks and accept any offer of 
 suitable employment.  The remaining hours necessary to meet the 
 requirements of section 256J.55, subdivision 1, may be met 
 through participation in other work activities under section 
 256J.49, subdivision 13.  The participant's employment plan must 
 specify, at a minimum:  (1) whether the job search is supervised 
 or unsupervised; (2) support services that will be provided; and 
 (3) how frequently the participant must report to the job 
 counselor.  Participants who are unable to find suitable 
 employment after six weeks must meet with the job counselor to 
 determine whether other activities in paragraph (a) should be 
 incorporated into the employment plan.  Job search activities 
 which are continued after six weeks must be structured and 
 supervised. 

    (c) Beginning July 1, 2004, activities and hourly 
 requirements in the employment plan may be adjusted as necessary 
 to accommodate the personal and family circumstances of 
 participants identified under section 256J.561, subdivision 2, 
 paragraph (d).  Participants who no longer meet the provisions 
 of section 256J.561, subdivision 2, paragraph (d), must meet 
 with the job counselor within ten days of the determination to 
 revise the employment plan. 

    (d) Participants who are determined to have barriers to 
 obtaining or retaining employment that will not be overcome 
 during six weeks of job search under paragraph (b) must work 
 with the job counselor to develop an employment plan that 
 addresses those barriers by incorporating appropriate activities 
 from paragraph (a), clauses (1) to (6).  The employment plan 
 must include enough hours to meet the participation requirements 
 in section 256J.55, subdivision 1, unless a compelling reason to 
 require fewer hours is noted in the participant's file. 

    (e) The job counselor and the participant must sign the 
 employment plan to indicate agreement on the contents.  Failure 
 to develop or comply with activities in the plan, or voluntarily 
 quitting suitable employment without good cause, will result in 
 the imposition of a sanction under section 256J.46. 

    (f) Employment plans must be reviewed at least every three 
 months to determine whether activities and hourly requirements 
 should be revised. 

    Subd. 3.    Employment plan; family violence waiver.  
 (a) A participant who requests and qualifies for a family 
 violence waiver shall develop or revise the employment plan as 
 specified in this subdivision with a job counselor or county, 
 and a person trained in domestic violence.  The revised or new 
 employment plan must be approved by the county or the job 
 counselor.  The plan may address safety, legal, or emotional 
 issues, and other demands on the family as a result of the 
 family violence.  Information in section 256J.515, clauses (1) 
 to (8), must be included as part of the development of the plan. 

    (b) The primary goal of an employment plan developed under 
 this subdivision is to ensure the safety of the caregiver and 
 children.  To the extent it is consistent with ensuring safety, 
 the plan shall also include activities that are designed to lead 
 to economic stability.  An activity is inconsistent with 
 ensuring safety if, in the opinion of a person trained in 
 domestic violence, the activity would endanger the safety of the 
 participant or children.  A plan under this subdivision may not 
 automatically include a provision that requires a participant to 
 obtain an order for protection or to attend counseling. 

    (c) If at any time there is a disagreement over whether the 
 activities in the plan are appropriate or the participant is not 
 complying with activities in the plan under this subdivision, 
 the participant must receive the assistance of a person trained 
 in domestic violence to help resolve the disagreement or 
 noncompliance with the county or job counselor.  If the person 
 trained in domestic violence recommends that the activities are 
 still appropriate, the county or a job counselor must approve 
 the activities in the plan or provide written reasons why 
 activities in the plan are not approved and document how denial 
 of the activities does not endanger the safety of the 
 participant or children. 

    Subd. 4.    Self-employment.  (a) Self-employment 
 activities may be included in an employment plan contingent on 
 the development of a business plan which establishes a timetable 
 and earning goals that will result in the participant exiting 
 MFIP assistance.  Business plans must be developed with 
 assistance from an individual or organization with expertise in 
 small business as approved by the job counselor. 

    (b) Participants with an approved plan that includes 
 self-employment must meet the participation requirements in 
 section 256J.55, subdivision 1.  Only hours where the 
 participant earns at least minimum wage shall be counted toward 
 the requirement.  Additional activities and hours necessary to 
 meet the participation requirements in section 256J.55, 
 subdivision 1, must be included in the employment plan. 

    (c) Employment plans which include self-employment 
 activities must be reviewed every three months.  Participants 
 who fail, without good cause, to make satisfactory progress as 
 established in the business plan must revise the employment plan 
 to replace the self-employment with other approved work 
 activities. 

    (d) The requirements of this subdivision may be waived for 
 participants who are enrolled in the self-employment investment 
 demonstration program (SEID) under section 256J.65, and who make 
 satisfactory progress as determined by the job counselor and the 
 SEID provider. 

    Subd. 5.    Transition from the diversionary work program. 
  Participants who become eligible for MFIP assistance after 
 completing the diversionary work program under section 256J.95 
 must comply with all requirements of subdivisions 1 and 2.  
 Participants who become eligible for MFIP assistance after being 
 determined unable to benefit from the diversionary work program 
 must comply with the requirements of subdivisions 1 and 2, with 
 the exception of subdivision 2, paragraph (b). 

    Subd. 6.    Loss of employment.  Participants who are 
 laid off, quit with good cause, or are terminated from 
 employment through no fault of their own must meet with the job 
 counselor within ten working days to ascertain the reason for 
 the job loss and to revise the employment plan as necessary to 
 address the problem. 

    HIST: 1Sp2003 c 14 art 1 s 78; 2004 c 288 art 4 s 46,47 

     256J.53 Postsecondary education; limitations on 
  approval, job search requirement. 

    Subdivision 1.    Length of program.  In order for a 
 postsecondary education or training program to be an approved 
 work activity as defined in section 256J.49, subdivision 13, 
 clause (6), it must be a program lasting 24 months or less, and 
 the participant must meet the requirements of subdivisions 2, 3, 
 and 5.  

    Subd. 2.    Approval of postsecondary education or 
 training.  (a) In order for a postsecondary education or 
 training program to be an approved activity in an employment 
 plan, the participant must be working in unsubsidized employment 
 at least 20 hours per week. 

    (b) Participants seeking approval of a postsecondary 
 education or training plan must provide documentation that: 

    (1) the employment goal can only be met with the additional 
 education or training; 

    (2) there are suitable employment opportunities that 
 require the specific education or training in the area in which 
 the participant resides or is willing to reside; 

    (3) the education or training will result in significantly 
 higher wages for the participant than the participant could earn 
 without the education or training; 

    (4) the participant can meet the requirements for admission 
 into the program; and 

    (5) there is a reasonable expectation that the participant 
 will complete the training program based on such factors as the 
 participant's MFIP assessment, previous education, training, and 
 work history; current motivation; and changes in previous 
 circumstances. 

    (c) The hourly unsubsidized employment requirement does not 
 apply for intensive education or training programs lasting 12 
 weeks or less when full-time attendance is required. 

    (d) Participants with an approved employment plan in place 
 on July 1, 2003, which includes more than 12 months of 
 postsecondary education or training shall be allowed to complete 
 that plan provided that hourly requirements in section 256J.55, 
 subdivision 1, and conditions specified in paragraph (b), and 
 subdivisions 3 and 5 are met.  A participant whose case is 
 subsequently closed for three months or less for reasons other 
 than noncompliance with program requirements and who returns to 
 MFIP shall be allowed to complete that plan provided that hourly 
 requirements in section 256J.55, subdivision 1, and conditions 
 specified in paragraph (b) and subdivisions 3 and 5 are met. 

    Subd. 3.    Satisfactory progress required.  In order 
 for a postsecondary education or training program to be an 
 approved activity in a participant's employment plan, the 
 participant must maintain satisfactory progress in the program.  
 "Satisfactory progress" in an education or training program 
 means (1) the participant remains in good standing while the 
 participant is enrolled in the program, as defined by the 
 education or training institution, or (2) the participant makes 
 satisfactory progress as the term is defined in the 
 participant's employment plan. 

    Subd. 4. Repealed, 1Sp2001 c 9 art 10 s 67 

    Subd. 5.    Requirements after postsecondary education or 
 training.  Upon completion of an approved education or 
 training program, a participant who does not meet the 
 participation requirements in section 256J.55, subdivision 1, 
 through unsubsidized employment must participate in job search.  
 If, after six weeks of job search, the participant does not find 
 a full-time job consistent with the employment goal, the 
 participant must accept any offer of full-time suitable 
 employment, or meet with the job counselor to revise the 
 employment plan to include additional work activities necessary 
 to meet hourly requirements. 

    HIST: 1997 c 85 art 1 s 44; 1Sp2001 c 9 art 10 s 45,66; 2002 c 
 379 art 1 s 113; 1Sp2003 c 14 art 1 s 79-81; 2004 c 288 art 4 s 
 48 

     256J.531 Basic education; English as a second language. 

    Subdivision 1.    Approval of adult basic education.  
 With the exception of classes related to obtaining a general 
 educational development credential (GED), a participant must 
 have reading or mathematics proficiency below a ninth grade 
 level in order for adult basic education classes to be an 
 approved work activity.  The employment plan must also specify 
 that the participant fulfill no more than one-half of the 
 participation requirements in section 256J.55, subdivision 1, 
 through attending adult basic education or general educational 
 development classes. 

    Subd. 2.    Approval of English as a second language.  
 In order for English as a second language (ESL) classes to be an 
 approved work activity in an employment plan, a participant must 
 be below a spoken language proficiency level of SPL6 or its 
 equivalent, as measured by a nationally recognized test.  In 
 approving ESL as a work activity, the job counselor must give 
 preference to enrollment in a functional work literacy program, 
 if one is available, over a regular ESL program.  A participant 
 may not be approved for more than a combined total of 24 months 
 of ESL classes while participating in the diversionary work 
 program and the employment and training services component of 
 MFIP.  The employment plan must also specify that the 
 participant fulfill no more than one-half of the participation 
 requirements in section 256J.55, subdivision 1, through 
 attending ESL classes.  For participants enrolled in functional 
 work literacy classes, no more than two-thirds of the 
 participation requirements in section 256J.55, subdivision 1, 
 may be met through attending functional work literacy classes. 

    HIST: 1Sp2003 c 14 art 1 s 82 

     256J.54 Minor parents; employment plan. 

    Subdivision 1.    Assessment of educational progress and 
 needs.  (a) The county agency must document the educational 
 level of each MFIP caregiver who is under the age of 20 and 
 determine if the caregiver has obtained a high school diploma or 
 its equivalent.  If the caregiver has not obtained a high school 
 diploma or its equivalent, the county agency must complete an 
 individual assessment for the caregiver unless the caregiver is 
 exempt from the requirement to attend school under subdivision 5 
 or has chosen to have an employment plan under section 256J.521, 
 subdivision 2, as allowed in paragraph (b).  The assessment must 
 be performed as soon as possible but within 30 days of 
 determining MFIP eligibility for the caregiver.  The assessment 
 must provide an initial examination of the caregiver's 
 educational progress and needs, literacy level, child care and 
 supportive service needs, family circumstances, skills, and work 
 experience.  In the case of a caregiver under the age of 18, the 
 assessment must also consider the results of either the 
 caregiver's or the caregiver's minor child's child and teen 
 checkup under Minnesota Rules, parts 9505.0275 and 9505.1693 to 
 9505.1748, if available, and the effect of a child's development 
 and educational needs on the caregiver's ability to participate 
 in the program.  The county agency must advise the caregiver 
 that the caregiver's first goal must be to complete an 
 appropriate education option if one is identified for the 
 caregiver through the assessment and, in consultation with 
 educational agencies, must review the various school completion 
 options with the caregiver and assist in selecting the most 
 appropriate option.  

    (b) The county agency must give a caregiver, who is age 18 
 or 19 and has not obtained a high school diploma or its 
 equivalent, the option to choose an employment plan with an 
 education option under subdivision 3 or an employment plan under 
 section 256J.521, subdivision 2. 

    Subd. 2.    Responsibility for assessment and employment 
 plan.  For caregivers who are under age 18 without a high 
 school diploma or its equivalent, the assessment under 
 subdivision 1 and the employment plan under subdivision 3 must 
 be completed by the social services agency under section 
 257.33.  For caregivers who are age 18 or 19 without a high 
 school diploma or its equivalent who choose to have an 
 employment plan with an education option under subdivision 3, 
 the assessment under subdivision 1 and the employment plan under 
 subdivision 3 must be completed by the job counselor or, at 
 county option, by the social services agency under section 
 257.33.  Upon reaching age 18 or 19 a caregiver who received 
 social services under section 257.33 and is without a high 
 school diploma or its equivalent has the option to choose 
 whether to continue receiving services under the caregiver's 
 plan from the social services agency or to utilize an MFIP 
 employment and training service provider.  The social services 
 agency or the job counselor shall consult with representatives 
 of educational agencies that are required to assist in 
 developing educational plans under section 124D.331. 

    Subd. 3.    Education option developed.  If the job 
 counselor or county social services agency identifies an 
 appropriate education option for a minor caregiver without a 
 high school diploma or its equivalent, or a caregiver age 18 or 
 19 without a high school diploma or its equivalent who chooses 
 an employment plan with an education option, the job counselor 
 or agency must develop an employment plan which reflects the 
 identified option.  The plan must specify that participation in 
 an educational activity is required, what school or educational 
 program is most appropriate, the services that will be provided, 
 the activities the caregiver will take part in, including child 
 care and supportive services, the consequences to the caregiver 
 for failing to participate or comply with the specified 
 requirements, and the right to appeal any adverse action.  The 
 employment plan must, to the extent possible, reflect the 
 preferences of the caregiver. 

    Subd. 4.    No appropriate educational option.  If the 
 job counselor determines that there is no appropriate 
 educational option for a caregiver who is age 18 or 19 without a 
 high school diploma or its equivalent, the job counselor must 
 develop an employment plan, as defined in section 256J.49, 
 subdivision 5, for the caregiver.  If the county social services 
 agency determines that school attendance is not appropriate for 
 a caregiver under age 18 without a high school diploma or its 
 equivalent, the county agency shall refer the caregiver to 
 social services for services as provided in section 257.33. 

    Subd. 5.    School attendance required.  (a) 
 Notwithstanding the provisions of section 256J.56, minor 
 parents, or 18- or 19-year-old parents without a high school 
 diploma or its equivalent who chooses an employment plan with an 
 education option must attend school unless: 

    (1) transportation services needed to enable the caregiver 
 to attend school are not available; 

    (2) appropriate child care services needed to enable the 
 caregiver to attend school are not available; 

    (3) the caregiver is ill or incapacitated seriously enough 
 to prevent attendance at school; or 

    (4) the caregiver is needed in the home because of the 
 illness or incapacity of another member of the household.  This 
 includes a caregiver of a child who is younger than six weeks of 
 age. 

    (b) The caregiver must be enrolled in a secondary school 
 and meeting the school's attendance requirements.  The county, 
 social service agency, or job counselor must verify at least 
 once per quarter that the caregiver is meeting the school's 
 attendance requirements.  An enrolled caregiver is considered to 
 be meeting the attendance requirements when the school is not in 
 regular session, including during holiday and summer breaks.  

    HIST: 1997 c 85 art 1 s 45; 1998 c 397 art 11 s 3; 1998 c 407 
 art 6 s 98-101; 1999 c 245 art 6 s 68; 1Sp2001 c 9 art 10 s 66; 
 1Sp2003 c 14 art 1 s 83-86 

     256J.545 Family violence waiver criteria. 

    (a) In order to qualify for a family violence waiver, an 
 individual must provide documentation of past or current family 
 violence which may prevent the individual from participating in 
 certain employment activities.  A claim of family violence must 
 be documented by the applicant or participant providing a sworn 
 statement which is supported by collateral documentation. 

    (b) Collateral documentation may consist of: 

    (1) police, government agency, or court records; 

    (2) a statement from a battered women's shelter staff with 
 knowledge of the circumstances or credible evidence that 
 supports the sworn statement; 

    (3) a statement from a sexual assault or domestic violence 
 advocate with knowledge of the circumstances or credible 
 evidence that supports the sworn statement; 

    (4) a statement from professionals from whom the applicant 
 or recipient has sought assistance for the abuse; or 

    (5) a sworn statement from any other individual with 
 knowledge of circumstances or credible evidence that supports 
 the sworn statement. 

    HIST: 1Sp2003 c 14 art 1 s 87 

     256J.55 Participant requirements, rights, and 
  expectations. 

    Subdivision 1.    Participation requirements.  (a) All 
 caregivers must participate in employment services under 
 sections 256J.515 to 256J.57 concurrent with receipt of MFIP 
 assistance. 

    (b) Until July 1, 2004, participants who meet the 
 requirements of section 256J.56 are exempt from participation 
 requirements. 

    (c) Participants under paragraph (a) must develop and 
 comply with an employment plan under section 256J.521 or section 
 256J.54 in the case of a participant under the age of 20 who has 
 not obtained a high school diploma or its equivalent. 

    (d) With the exception of participants under the age of 20 
 who must meet the education requirements of section 256J.54, all 
 participants must meet the hourly participation requirements of 
 TANF or the hourly requirements listed in clauses (1) to (3), 
 whichever is higher. 

    (1) In single-parent families with no children under six 
 years of age, the job counselor and the caregiver must develop 
 an employment plan that includes 30 to 35 hours per week of work 
 activities. 

    (2) In single-parent families with a child under six years 
 of age, the job counselor and the caregiver must develop an 
 employment plan that includes 20 to 35 hours per week of work 
 activities. 

    (3) In two-parent families, the job counselor and the 
 caregivers must develop employment plans which result in a 
 combined total of at least 55 hours per week of work activities. 

    (e) Failure to participate in employment services, 
 including the requirement to develop and comply with an 
 employment plan, including hourly requirements, without good 
 cause under section 256J.57, shall result in the imposition of a 
 sanction under section 256J.46. 

    Subd. 2.    Duty to report.  The participant must inform 
 the job counselor within ten working days regarding any changes 
 related to the participant's employment status. 

    Subd. 3.    Move to a different county.  MFIP applicants 
 or recipients who move to a different county in Minnesota and 
 are required to participate in employment and training services 
 are subject to the requirements of the destination county.  An 
 employment plan that was developed in the county of origin may 
 be continued in the destination county if both the destination 
 county and the participant agree to do so. 

    Subd. 4.    Choice of provider.  MFIP caregivers must be 
 able to choose from at least two employment and training service 
 providers, unless the county has demonstrated to the 
 commissioner that the provision of multiple employment and 
 training service providers would result in financial hardship 
 for the county, or the county is utilizing a workforce center as 
 specified in section 256J.50, subdivision 8.  Both parents in a 
 two-parent family must choose the same employment and training 
 service provider unless a special need, such as bilingual 
 services, is identified but not available through one service 
 provider. 

    Subd. 5. Repealed, 1Sp2003 c 14 art 1 s 107 

    HIST: 1997 c 85 art 1 s 46; 1998 c 407 art 6 s 102; 1999 c 245 
 art 6 s 69; 1Sp2001 c 9 art 10 s 66; 1Sp2003 c 14 art 1 s 88,89 

  256J.56 Expired, 1Sp2003 c 14 art 1 s 90; 2004 c 288 art 4 
  s 49 

     256J.561 Universal participation required. 

    Subdivision 1.    Implementation of universal 
 participation requirements.  (a) All caregivers whose 
 applications were received July 1, 2004, or after, are 
 immediately subject to the requirements in subdivision 2. 

    (b) For all MFIP participants who were exempt from 
 participating in employment services under section 256J.56 as of 
 June 30, 2004, between July 1, 2004, and June 30, 2005, the 
 county, as part of the participant's recertification under 
 section 256J.32, subdivision 6, shall determine whether a new 
 employment plan is required to meet the requirements in 
 subdivision 2.  Counties shall notify each participant who is in 
 need of an employment plan that the participant must meet with a 
 job counselor within ten days to develop an employment plan.  
 Until a participant's employment plan is developed, the 
 participant shall be considered in compliance with the 
 participation requirements in this section if the participant 
 continues to meet the criteria for an exemption under section 
 256J.56 as in effect on June 30, 2004, and is cooperating in the 
 development of the new plan. 

    Subd. 2.    Participation requirements.  (a) All MFIP 
 caregivers, except caregivers who meet the criteria in 
 subdivision 3, must participate in employment services.  Except 
 as specified in paragraphs (b) to (d), the employment plan must 
 meet the requirements of section 256J.521, subdivision 2, 
 contain allowable work activities, as defined in section 
 256J.49, subdivision 13, and, include at a minimum, the number 
 of participation hours required under section 256J.55, 
 subdivision 1. 

    (b) Minor caregivers and caregivers who are less than age 
 20 who have not completed high school or obtained a GED are 
 required to comply with section 256J.54. 

    (c) A participant who has a family violence waiver shall 
 develop and comply with an employment plan under section 
 256J.521, subdivision 3. 

    (d) As specified in section 256J.521, subdivision 2, 
 paragraph (c), a participant who meets any one of the following 
 criteria may work with the job counselor to develop an 
 employment plan that contains less than the number of 
 participation hours under section 256J.55, subdivision 1.  
 Employment plans for participants covered under this paragraph 
 must be tailored to recognize the special circumstances of 
 caregivers and families including limitations due to illness or 
 disability and caregiving needs: 

    (1) a participant who is age 60 or older; 

    (2) a participant who has been diagnosed by a qualified 
 professional as suffering from an illness or incapacity that is 
 expected to last for 30 days or more, including a pregnant 
 participant who is determined to be unable to obtain or retain 
 employment due to the pregnancy; or 

    (3) a participant who is determined by a qualified 
 professional as being needed in the home to care for an ill or 
 incapacitated family member, including caregivers with a child 
 or an adult in the household who meets the disability or medical 
 criteria for home care services under section 256B.0651, 
 subdivision 1, paragraph (c), or a home and community-based 
 waiver services program under chapter 256B, or meets the 
 criteria for severe emotional disturbance under section 
 245.4871, subdivision 6, or for serious and persistent mental 
 illness under section 245.462, subdivision 20, paragraph (c). 

    (e) For participants covered under paragraphs (c) and (d), 
 the county shall review the participant's employment services 
 status every three months to determine whether conditions have 
 changed.  When it is determined that the participant's status is 
 no longer covered under paragraph (c) or (d), the county shall 
 notify the participant that a new or revised employment plan is 
 needed.  The participant and job counselor shall meet within ten 
 days of the determination to revise the employment plan. 

    Subd. 3.    Child under 12 weeks of age.  (a) A 
 participant who has a natural born child who is less than 12 
 weeks of age who meets the criteria in this subdivision is not 
 required to participate in employment services until the child 
 reaches 12 weeks of age.  To be eligible for this provision, the 
 assistance unit must not have already used this provision or the 
 previously allowed child under age one exemption.  However, an 
 assistance unit that has an approved child under age one 
 exemption at the time this provision becomes effective may 
 continue to use that exemption until the child reaches one year 
 of age. 

    (b) The provision in paragraph (a) ends the first full 
 month after the child reaches 12 weeks of age.  This provision 
 is available only once in a caregiver's lifetime.  In a 
 two-parent household, only one parent shall be allowed to use 
 this provision.  The participant and job counselor must meet 
 within ten days after the child reaches 12 weeks of age to 
 revise the participant's employment plan. 

    HIST: 1Sp2003 c 14 art 1 s 91; 2005 c 98 art 1 s 14 

     256J.57 Good cause; failure to comply; notice; 
  conciliation conference. 

    Subdivision 1.    Good cause for failure to comply.  The 
 county agency shall not impose the sanction under section 
 256J.46 if it determines that the participant has good cause for 
 failing to comply with the requirements of sections 256J.515 to 
 256J.57.  Good cause exists when: 

    (1) appropriate child care is not available; 

    (2) the job does not meet the definition of suitable 
 employment; 

    (3) the participant is ill or injured; 

    (4) a member of the assistance unit, a relative in the 
 household, or a foster child in the household is ill and needs 
 care by the participant that prevents the participant from 
 complying with the employment plan; 

    (5) the participant is unable to secure necessary 
 transportation; 

    (6) the participant is in an emergency situation that 
 prevents compliance with the employment plan; 

    (7) the schedule of compliance with the employment plan 
 conflicts with judicial proceedings; 

    (8) a mandatory MFIP meeting is scheduled during a time 
 that conflicts with a judicial proceeding or a meeting related 
 to a juvenile court matter, or a participant's work schedule; 

    (9) the participant is already participating in acceptable 
 work activities; 

    (10) the employment plan requires an educational program 
 for a caregiver under age 20, but the educational program is not 
 available; 

    (11) activities identified in the employment plan are not 
 available; 

    (12) the participant is willing to accept suitable 
 employment, but suitable employment is not available; or 

    (13) the participant documents other verifiable impediments 
 to compliance with the employment plan beyond the participant's 
 control. 

    The job counselor shall work with the participant to 
 reschedule mandatory meetings for individuals who fall under 
 clauses (1), (3), (4), (5), (6), (7), and (8). 

    Subd. 2.    Notice of intent to sanction.  (a) When a 
 participant fails without good cause to comply with the 
 requirements of sections 256J.515 to 256J.57, the job counselor 
 or the county agency must provide a notice of intent to sanction 
 to the participant specifying the program requirements that were 
 not complied with, informing the participant that the county 
 agency will impose the sanctions specified in section 256J.46, 
 and informing the participant of the opportunity to request a 
 conciliation conference as specified in paragraph (b).  The 
 notice must also state that the participant's continuing 
 noncompliance with the specified requirements will result in 
 additional sanctions under section 256J.46, without the need for 
 additional notices or conciliation conferences under this 
 subdivision.  The notice, written in English, must include the 
 Department of Human Services language block, and must be sent to 
 every applicable participant.  If the participant does not 
 request a conciliation conference within ten calendar days of 
 the mailing of the notice of intent to sanction, the job 
 counselor must notify the county agency that the assistance 
 payment should be reduced.  The county must then send a notice 
 of adverse action to the participant informing the participant 
 of the sanction that will be imposed, the reasons for the 
 sanction, the effective date of the sanction, and the 
 participant's right to have a fair hearing under section 256J.40.

    (b) The participant may request a conciliation conference 
 by sending a written request, by making a telephone request, or 
 by making an in-person request.  The request must be received 
 within ten calendar days of the date the county agency mailed 
 the ten-day notice of intent to sanction.  If a timely request 
 for a conciliation is received, the county agency's service 
 provider must conduct the conference within five days of the 
 request.  The job counselor's supervisor, or a designee of the 
 supervisor, must review the outcome of the conciliation 
 conference.  If the conciliation conference resolves the 
 noncompliance, the job counselor must promptly inform the county 
 agency and request withdrawal of the sanction notice. 

    (c) Upon receiving a sanction notice, the participant may 
 request a fair hearing under section 256J.40, without exercising 
 the option of a conciliation conference.  In such cases, the 
 county agency shall not require the participant to engage in a 
 conciliation conference prior to the fair hearing. 

    (d) If the participant requests a fair hearing or a 
 conciliation conference, sanctions will not be imposed until 
 there is a determination of noncompliance.  Sanctions must be 
 imposed as provided in section 256J.46. 

    HIST: 1997 c 85 art 1 s 48; 1998 c 407 art 6 s 104; 1999 c 245 
 art 6 s 71; 1Sp2001 c 9 art 10 s 47; 2002 c 379 art 1 s 113; 
 1Sp2003 c 14 art 1 s 92; 2004 c 288 art 4 s 50 

     256J.61 Reporting requirements. 

    The commissioner of human services, in cooperation with the 
 commissioner of employment and economic development, shall develop 
 reporting 
 requirements for county agencies and employment and training 
 service providers according to section 256.01, subdivision 2, 
 paragraph (17).  Reporting requirements must, to the extent 
 possible, use existing client tracking systems and must be 
 within the limits of funds available.  The requirements must 
 include summary information necessary for state agencies and the 
 legislature to evaluate the effectiveness of the services. 

    HIST: 1997 c 85 art 1 s 49; 2004 c 206 s 52 

     256J.62 Universal participation in employment services. 

    Subdivision 1. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 2. Repealed, 1999 c 245 art 6 s 89 

    Subd. 2a. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 3. Repealed, 1999 c 245 art 6 s 89 

    Subd. 4. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 5. Repealed, 1999 c 159 s 154; 1999 c 245 art 6 s 
 89 

    Subd. 6. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 7. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 8. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 9.    Continuation of certain services.  Only if 
 services were approved as part of an employment plan prior to 
 June 30, 2003, at the request of the participant, the county may 
 continue to provide case management, counseling, or other 
 support services to a participant: 

    (1) who has achieved the employment goal; or 

    (2) who under section 256J.42 is no longer eligible to 
 receive MFIP but whose income is below 115 percent of the 
 federal poverty guidelines for a family of the same size. 

    These services may be provided for up to 12 months 
 following termination of the participant's eligibility for MFIP. 

    HIST: 1997 c 85 art 1 s 50; 1999 c 159 s 90-92; 1999 c 245 art 
 6 s 72-77; 2000 c 260 s 97; 1Sp2001 c 9 art 10 s 48,49; 2002 c 
 379 art 1 s 113; 1Sp2003 c 14 art 1 s 93 

  256J.625 Repealed, 1Sp2003 c 14 art 1 s 107 

     256J.626 MFIP consolidated fund. 

    Subdivision 1.    Consolidated fund.  The consolidated 
 fund is established to support counties and tribes in meeting 
 their duties under this chapter.  Counties and tribes must use 
 funds from the consolidated fund to develop programs and 
 services that are designed to improve participant outcomes as 
 measured in section 256J.751, subdivision 2.  Counties may use 
 the funds for any allowable expenditures under subdivision 2.  
 Tribes may use the funds for any allowable expenditures under 
 subdivision 2, except those in clauses (1) and (6). 

    Subd. 2.    Allowable expenditures.  (a) The 
 commissioner must restrict expenditures under the consolidated 
 fund to benefits and services allowed under title IV-A of the 
 federal Social Security Act.  Allowable expenditures under the 
 consolidated fund may include, but are not limited to: 

    (1) short-term, nonrecurring shelter and utility needs that 
 are excluded from the definition of assistance under Code of 
 Federal Regulations, title 45, section 260.31, for families who 
 meet the residency requirement in section 256J.12, subdivisions 
 1 and 1a.  Payments under this subdivision are not considered 
 TANF cash assistance and are not counted towards the 60-month 
 time limit; 

    (2) transportation needed to obtain or retain employment or 
 to participate in other approved work activities; 

    (3) direct and administrative costs of staff to deliver 
 employment services for MFIP or the diversionary work program, 
 to administer financial assistance, and to provide specialized 
 services intended to assist hard-to-employ participants to 
 transition to work; 

    (4) costs of education and training including functional 
 work literacy and English as a second language; 

    (5) cost of work supports including tools, clothing, boots, 
 and other work-related expenses; 

    (6) county administrative expenses as defined in Code of 
 Federal Regulations, title 45, section 260(b); 

    (7) services to parenting and pregnant teens; 

    (8) supported work; 

    (9) wage subsidies; 

    (10) child care needed for MFIP or diversionary work 
 program participants to participate in social services; 

    (11) child care to ensure that families leaving MFIP or 
 diversionary work program will continue to receive child care 
 assistance from the time the family no longer qualifies for 
 transition year child care until an opening occurs under the 
 basic sliding fee child care program; and 

    (12) services to help noncustodial parents who live in 
 Minnesota and have minor children receiving MFIP or DWP 
 assistance, but do not live in the same household as the child, 
 obtain or retain employment. 

    (b) Administrative costs that are not matched with county 
 funds as provided in subdivision 8 may not exceed 7.5 percent of 
 a county's or 15 percent of a tribe's allocation under this 
 section.  The commissioner shall define administrative costs for 
 purposes of this subdivision. 

    Subd. 3.    Eligibility for services.  Families with a 
 minor child, a pregnant woman, or a noncustodial parent of a 
 minor child receiving assistance, with incomes below 200 percent 
 of the federal poverty guideline for a family of the applicable 
 size, are eligible for services funded under the consolidated 
 fund.  Counties and tribes must give priority to families 
 currently receiving MFIP or diversionary work program, and 
 families at risk of receiving MFIP or diversionary work program. 

    Subd. 4.    County and tribal biennial service agreements. 
  (a) Effective January 1, 2004, and each two-year period 
 thereafter, each county and tribe must have in place an approved 
 biennial service agreement related to the services and programs 
 in this chapter.  In counties with a city of the first class 
 with a population over 300,000, the county must consider a 
 service agreement that includes a jointly developed plan for the 
 delivery of employment services with the city.  Counties may 
 collaborate to develop multicounty, multitribal, or regional 
 service agreements. 

    (b) The service agreements will be completed in a form 
 prescribed by the commissioner.  The agreement must include: 

    (1) a statement of the needs of the service population and 
 strengths and resources in the community; 

    (2) numerical goals for participant outcomes measures to be 
 accomplished during the biennial period.  The commissioner may 
 identify outcomes from section 256J.751, subdivision 2, as core 
 outcomes for all counties and tribes; 

    (3) strategies the county or tribe will pursue to achieve 
 the outcome targets.  Strategies must include specification of 
 how funds under this section will be used and may include 
 community partnerships that will be established or strengthened; 
 and 

    (4) other items prescribed by the commissioner in 
 consultation with counties and tribes. 

    (c) The commissioner shall provide each county and tribe 
 with information needed to complete an agreement, including:  
 (1) information on MFIP cases in the county or tribe; (2) 
 comparisons with the rest of the state; (3) baseline performance 
 on outcome measures; and (4) promising program practices. 

    (d) The service agreement must be submitted to the 
 commissioner by October 15, 2003, and October 15 of each second 
 year thereafter.  The county or tribe must allow a period of not 
 less than 30 days prior to the submission of the agreement to 
 solicit comments from the public on the contents of the 
 agreement. 

    (e) The commissioner must, within 60 days of receiving each 
 county or tribal service agreement, inform the county or tribe 
 if the service agreement is approved.  If the service agreement 
 is not approved, the commissioner must inform the county or 
 tribe of any revisions needed prior to approval. 

    (f) The service agreement in this subdivision supersedes 
 the plan requirements of section 116L.88. 

    Subd. 5.    Innovation projects.  Beginning January 1, 
 2005, no more than $3,000,000 of the funds annually appropriated 
 to the commissioner for use in the consolidated fund shall be 
 available to the commissioner for projects testing innovative 
 approaches to improving outcomes for MFIP participants, and 
 persons at risk of receiving MFIP as detailed in subdivision 3.  
 Projects shall be targeted to geographic areas with poor 
 outcomes as specified in section 256J.751, subdivision 5, or to 
 subgroups within the MFIP case load who are experiencing poor 
 outcomes. 

    Subd. 6.    Base allocation to counties and tribes; 
 definitions.  (a) For purposes of this section, the following 
 terms have the meanings given. 

    (1) "2002 historic spending base" means the commissioner's 
 determination of the sum of the reimbursement related to fiscal 
 year 2002 of county or tribal agency expenditures for the base 
 programs listed in clause (6), items (i) through (iv), and 
 earnings related to calendar year 2002 in the base program 
 listed in clause (6), item (v), and the amount of spending in 
 fiscal year 2002 in the base program listed in clause (6), item 
 (vi), issued to or on behalf of persons residing in the county 
 or tribal service delivery area. 

    (2) "Adjusted caseload factor" means a factor weighted: 

    (i) 47 percent on the MFIP cases in each county at four 
 points in time in the most recent 12-month period for which data 
 is available multiplied by the county's caseload difficulty 
 factor; and 

    (ii) 53 percent on the count of adults on MFIP in each 
 county and tribe at four points in time in the most recent 
 12-month period for which data is available multiplied by the 
 county or tribe's caseload difficulty factor. 

    (3) "Caseload difficulty factor" means a factor determined 
 by the commissioner for each county and tribe based upon the 
 self-support index described in section 256J.751, subdivision 2, 
 clause (7). 

    (4) "Initial allocation" means the amount potentially 
 available to each county or tribe based on the formula in 
 paragraphs (b) through (h). 

    (5) "Final allocation" means the amount available to each 
 county or tribe based on the formula in paragraphs (b) through 
 (h), after adjustment by subdivision 7. 

    (6) "Base programs" means the: 

    (i) MFIP employment and training services under Minnesota 
 Statutes 2002, section 256J.62, subdivision 1, in effect June 
 30, 2002; 

    (ii) bilingual employment and training services to refugees 
 under Minnesota Statutes 2002, section 256J.62, subdivision 6, 
 in effect June 30, 2002; 

    (iii) work literacy language programs under Minnesota 
 Statutes 2002, section 256J.62, subdivision 7, in effect June 
 30, 2002; 

    (iv) supported work program authorized in Laws 2001, First 
 Special Session chapter 9, article 17, section 2, in effect June 
 30, 2002; 

    (v) administrative aid program under section 256J.76 in 
 effect December 31, 2002; and 

    (vi) emergency assistance program under Minnesota Statutes 
 2002, section 256J.48, in effect June 30, 2002. 

    (b) The commissioner shall: 

    (1) beginning July 1, 2003, determine the initial 
 allocation of funds available under this section according to 
 clause (2); 

    (2) allocate all of the funds available for the period 
 beginning July 1, 2003, and ending December 31, 2004, to each 
 county or tribe in proportion to the county's or tribe's share 
 of the statewide 2002 historic spending base; 

    (3) determine for calendar year 2005 the initial allocation 
 of funds to be made available under this section in proportion 
 to the county or tribe's initial allocation for the period of 
 July 1, 2003, to December 31, 2004; 

    (4) determine for calendar year 2006 the initial allocation 
 of funds to be made available under this section based 90 
 percent on the proportion of the county or tribe's share of the 
 statewide 2002 historic spending base and ten percent on the 
 proportion of the county or tribe's share of the adjusted 
 caseload factor; 

    (5) determine for calendar year 2007 the initial allocation 
 of funds to be made available under this section based 70 
 percent on the proportion of the county or tribe's share of the 
 statewide 2002 historic spending base and 30 percent on the 
 proportion of the county or tribe's share of the adjusted 
 caseload factor; and 

    (6) determine for calendar year 2008 and subsequent years 
 the initial allocation of funds to be made available under this 
 section based 50 percent on the proportion of the county or 
 tribe's share of the statewide 2002 historic spending base and 
 50 percent on the proportion of the county or tribe's share of 
 the adjusted caseload factor. 

    (c) With the commencement of a new or expanded tribal TANF 
 program or an agreement under section 256.01, subdivision 2, 
 paragraph (g), in which some or all of the responsibilities of 
 particular counties under this section are transferred to a 
 tribe, the commissioner shall: 

    (1) in the case where all responsibilities under this 
 section are transferred to a tribal program, determine the 
 percentage of the county's current caseload that is transferring 
 to a tribal program and adjust the affected county's allocation 
 accordingly; and 

    (2) in the case where a portion of the responsibilities 
 under this section are transferred to a tribal program, the 
 commissioner shall consult with the affected county or counties 
 to determine an appropriate adjustment to the allocation. 

    (d) Effective January 1, 2005, counties and tribes will 
 have their final allocations adjusted based on the performance 
 provisions of subdivision 7. 

    Subd. 7.    Performance base funds.  (a) Beginning 
 calendar year 2005, each county and tribe will be allocated 95 
 percent of their initial calendar year allocation.  Counties and 
 tribes will be allocated additional funds based on performance 
 as follows: 

    (1) for calendar year 2005, a county or tribe that achieves 
 a 30 percent rate or higher on the MFIP participation rate under 
 section 256J.751, subdivision 2, clause (8), as averaged across 
 the four quarterly measurements for the most recent year for 
 which the measurements are available, will receive an additional 
 allocation equal to 2.5 percent of its initial allocation; and 

    (2) for calendar year 2006, a county or tribe that achieves 
 a 40 percent rate or a five percentage point improvement over 
 the previous year's MFIP participation rate under section 
 256J.751, subdivision 2, clause (8), as averaged across the four 
 quarterly measurements for the most recent year for which the 
 measurements are available, will receive an additional 
 allocation equal to 2.5 percent of its initial allocation; and 

    (3) for calendar year 2007, a county or tribe that achieves 
 a 50 percent rate or a five percentage point improvement over 
 the previous year's MFIP participation rate under section 
 256J.751, subdivision 2, clause (8), as averaged across the four 
 quarterly measurements for the most recent year for which the 
 measurements are available, will receive an additional 
 allocation equal to 2.5 percent of its initial allocation; and 

    (4) for calendar year 2008 and yearly thereafter, a county 
 or tribe that achieves a 50 percent MFIP participation rate 
 under section 256J.751, subdivision 2, clause (8), as averaged 
 across the four quarterly measurements for the most recent year 
 for which the measurements are available, will receive an 
 additional allocation equal to 2.5 percent of its initial 
 allocation; and 

    (5) for calendar years 2005 and thereafter, a county or 
 tribe that performs above the top of its annualized range of 
 expected performance on the three-year self-support index under 
 section 256J.751, subdivision 2, clause (7), will receive an 
 additional allocation equal to five percent of its initial 
 allocation; or 

    (6) for calendar years 2005 and thereafter, a county or 
 tribe that performs within its range of expected performance on 
 the annualized three-year self-support index under section 
 256J.751, subdivision 2, clause (7), will receive an additional 
 allocation equal to 2.5 percent of its initial allocation. 

    (b) Performance-based funds for a federally approved tribal 
 TANF program in which the state and tribe have in place a 
 contract under section 256.01, addressing consolidated funding, 
 will be allocated as follows: 

    (1) for calendar year 2006 and yearly thereafter, a tribe 
 that achieves the participation rate approved in its federal 
 TANF plan using the average of four quarterly measurements for 
 the most recent year for which the measurements are available, 
 will receive an additional allocation equal to 2.5 percent of 
 its initial allocation; and 

    (2) for calendar years 2006 and thereafter, a tribe that 
 performs above the top of its annualized range of expected 
 performance on the three-year self-support index under section 
 256J.751, subdivision 2, clause (7), will receive an additional 
 allocation equal to five percent of its initial allocation; or 

    (3) for calendar years 2006 and thereafter, a tribe that 
 performs within its range of expected performance on the 
 annualized three-year self-support index under section 256J.751, 
 subdivision 2, clause (7), will receive an additional allocation 
 equal to 2.5 percent of its initial allocation. 

    (c) Funds remaining unallocated after the performance-based 
 allocations in paragraph (a) are available to the commissioner 
 for innovation projects under subdivision 5. 

    (d)(1) If available funds are insufficient to meet county 
 and tribal allocations under paragraph (a), the commissioner may 
 make available for allocation funds that are unobligated and 
 available from the innovation projects through the end of the 
 current biennium. 

    (2) If after the application of clause (1) funds remain 
 insufficient to meet county and tribal allocations under 
 paragraph (a), the commissioner must proportionally reduce the 
 allocation of each county and tribe with respect to their 
 maximum allocation available under paragraph (a). 

    Subd. 8.    Reporting requirement and reimbursement.  (a)
 The commissioner shall specify requirements for reporting 
 according to section 256.01, subdivision 2, clause (17).  Each 
 county or tribe shall be reimbursed for eligible expenditures up 
 to the limit of its allocation and subject to availability of 
 funds. 

    (b) Reimbursements for county administrative-related 
 expenditures determined through the income maintenance random 
 moment time study shall be reimbursed at a rate of 50 percent of 
 eligible expenditures.  

    (c) The commissioner of human services shall review county 
 and tribal agency expenditures of the MFIP consolidated fund as 
 appropriate and may reallocate unencumbered or unexpended money 
 appropriated under this section to those county and tribal 
 agencies that can demonstrate a need for additional money as 
 follows: 

    (1) to the extent that particular county or tribal 
 allocations are reduced from the previous year's amount due to 
 the phase-in under subdivision 6, paragraph (b), clauses (4) to 
 (6), those tribes or counties would have first priority for 
 reallocated funds; and 

    (2) to the extent that unexpended funds are insufficient to 
 cover demonstrated need, funds will be prorated to those 
 counties and tribes in relation to demonstrated need. 

    Subd. 9.    Report.  The commissioner shall, in 
 consultation with counties and tribes: 

    (1) determine how performance-based allocations under 
 subdivision 7, paragraph (a), clauses (2) and (3), will be 
 allocated to groupings of counties and tribes when groupings are 
 used to measure expected performance ranges for the self-support 
 index under section 256J.751, subdivision 2, clause (7); and 

    (2) determine how performance-based allocations under 
 subdivision 7, paragraph (a), clauses (2) and (3), will be 
 allocated to tribes. 

 The commissioner shall report to the legislature on the formulas 
 developed in clauses (1) and (2) by January 1, 2004. 

    HIST: 1Sp2003 c 14 art 1 s 94,106; 2004 c 206 s 52; 2004 c 288 
 art 4 s 51-53; 2005 c 159 art 5 s 7-9 

     256J.645 Indian tribe MFIP employment services. 

    Subdivision 1.    Authorization to enter into agreements. 
  Effective July 1, 1997, the commissioner may enter into 
 agreements with federally recognized Indian tribes with a 
 reservation in the state to provide MFIP employment services to 
 members of the Indian tribe and to other caregivers who are a 
 part of the tribal member's MFIP assistance unit.  For purposes 
 of this section, "Indian tribe" means a tribe, band, nation, or 
 other federally recognized group or community of Indians.  The 
 commissioner may also enter into an agreement with a consortium 
 of Indian tribes providing the governing body of each Indian 
 tribe in the consortium complies with the provisions of this 
 section. 

    Subd. 2.    Tribal requirements.  The Indian tribe must: 

    (1) agree to fulfill the responsibilities provided under 
 the employment services component of MFIP regarding operation of 
 MFIP employment services, as designated by the commissioner; 

    (2) operate its employment services program within a 
 geographic service area not to exceed the counties within which 
 a border of the reservation falls; 

    (3) operate its program in conformity with section 13.46 
 and any applicable federal regulations in the use of data about 
 MFIP recipients; 

    (4) coordinate operation of its program with the county 
 agency, Workforce Investment Act programs, and other support 
 services or employment-related programs in the counties in which 
 the tribal unit's program operates; 

    (5) provide financial and program participant activity 
 record keeping and reporting in the manner and using the forms 
 and procedures specified by the commissioner and permit 
 inspection of its program and records by representatives of the 
 state; and 

    (6) have the Indian tribe's employment service provider 
 certified by the commissioner of employment and economic development, or 
 approved 
 by the county. 

    Subd. 3.    Funding.  If the commissioner and an Indian 
 tribe are parties to an agreement under this subdivision, the 
 agreement shall annually provide to the Indian tribe the funding 
 allocated in section 256J.626. 

    Subd. 4.    County agency requirement.  Indian tribal 
 members receiving MFIP benefits and residing in the service area 
 of an Indian tribe operating employment services under an 
 agreement with the commissioner must be referred by county 
 agencies in the service area to the Indian tribe for employment 
 services. 

    HIST: 1997 c 85 art 1 s 51; 1998 c 407 art 6 s 105; 1Sp2001 c 
 9 art 10 s 53; 2002 c 379 art 1 s 113; 1Sp2003 c 14 art 1 s 95; 2004 c 
 206 s 52 

     256J.65 The self-employment investment demonstration 
  program (SEID). 

    (a) A caregiver who enrolls and participates in the SEID 
 program as specified in section 268.95, may, at county option, 
 be exempted from other employment and training participation 
 requirements for a period of up to 24 months, except for the 
 school attendance requirements as specified in section 256J.54.  

    (b) The following income and resource considerations apply 
 to SEID participants:  

    (1) an unencumbered cash reserve fund, composed of proceeds 
 from a SEID business, is not counted against the grant if those 
 funds are reinvested in the business and the value of the 
 business does not exceed $3,000.  The value of the business is 
 determined by deducting outstanding encumbrances from retained 
 business profit; and 

    (2) the purchase of capital equipment and durable goods of 
 an amount up to $3,000 during a 24-month project period is 
 allowed as a business expense. 

    (c) SEID participants with a county-approved employment 
 plan are also eligible for employment and training services, 
 including child care and transportation. 

    HIST: 1997 c 85 art 1 s 52 

  256J.655 Repealed, 1Sp2003 c 14 art 1 s 107 

     256J.66 On-the-job training. 

    Subdivision 1.    Establishing the on-the-job training 
 program.  (a) County agencies may develop on-the-job training 
 programs for MFIP caregivers who are participating in employment 
 and training services.  A county agency that chooses to provide 
 on-the-job training may make payments to employers for 
 on-the-job training costs that, during the period of the 
 training, must not exceed 50 percent of the wages paid by the 
 employer to the participant.  The payments are deemed to be in 
 compensation for the extraordinary costs associated with 
 training participants under this section and in compensation for 
 the costs associated with the lower productivity of the 
 participants during training. 

    (b) Provision of an on-the-job training program under the 
 Job Training Partnership Act, in and of itself, does not qualify 
 as an on-the-job training program under this section. 

    (c) Participants in on-the-job training shall be 
 compensated by the employer at the same rates, including 
 periodic increases, as similarly situated employees or trainees 
 and in accordance with applicable law, but in no event less than 
 the federal or applicable state minimum wage, whichever is 
 higher. 

    Subd. 2.    Training and placement.  (a) County agencies 
 shall limit the length of training based on the complexity of 
 the job and the caregiver's previous experience and training.  
 Placement in an on-the-job training position with an employer is 
 for the purpose of training and employment with the same 
 employer who has agreed to retain the person upon satisfactory 
 completion of training. 

    (b) Placement of any participant in an on-the-job training 
 position must be compatible with the participant's assessment 
 and employment plan under section 256J.521. 

    HIST: 1997 c 85 art 1 s 53; 1Sp2001 c 9 art 10 s 66; 1Sp2003 c 
 14 art 1 s 96 

     256J.67 Community work experience. 

    Subdivision 1.    Establishing the community work 
 experience program.  To the extent of available resources, 
 each county agency may establish and operate a work experience 
 component for MFIP caregivers who are participating in 
 employment and training services.  This option for county 
 agencies supersedes the requirement in section 402(a)(1)(B)(iv) 
 of the Social Security Act that caregivers who have received 
 assistance for two months and who are not exempt from work 
 requirements must participate in a work experience program.  The 
 purpose of the work experience component is to enhance the 
 caregiver's employability and self-sufficiency and to provide 
 meaningful, productive work activities.  The county shall use 
 this program for an individual after exhausting all other 
 employment opportunities.  The county agency shall not require a 
 caregiver to participate in the community work experience 
 program unless the caregiver has been given an opportunity to 
 participate in other work activities.  

    Subd. 2.    Commissioner's duties.  The commissioner 
 shall assist counties in the design and implementation of these 
 components.  

    Subd. 3.    Employment options.  (a) Work sites 
 developed under this section are limited to projects that serve 
 a useful public service such as:  health, social service, 
 environmental protection, education, urban and rural development 
 and redevelopment, welfare, recreation, public facilities, 
 public safety, community service, services to aged or disabled 
 citizens, and child care.  To the extent possible, the prior 
 training, skills, and experience of a caregiver must be 
 considered in making appropriate work experience assignments. 

    (b) Structured, supervised volunteer work with an agency or 
 organization, which is monitored by the county service provider, 
 may, with the approval of the county agency, be used as a work 
 experience placement. 

    (c) As a condition of placing a caregiver in a program 
 under this section, the county agency shall first provide the 
 caregiver the opportunity: 

    (1) for placement in suitable subsidized or unsubsidized 
 employment through participation in a job search; or 

    (2) for placement in suitable employment through 
 participation in on-the-job training, if such employment is 
 available. 

    Subd. 4.    Employment plan.  (a) The caretaker's 
 employment plan must include the length of time needed in the 
 work experience program, the need to continue job-seeking 
 activities while participating in work experience, and the 
 caregiver's employment goals. 

    (b) After each six months of a caregiver's participation in 
 a work experience job placement, and at the conclusion of each 
 work experience assignment under this section, the county agency 
 shall reassess and revise, as appropriate, the caregiver's 
 employment plan. 

    (c) A caregiver may claim good cause under section 256J.57, 
 subdivision 1, for failure to cooperate with a work experience 
 job placement.  

    (d) The county agency shall limit the maximum number of 
 hours any participant may work under this section to the amount 
 of the MFIP standard of need divided by the federal or 
 applicable state minimum wage, whichever is higher.  After a 
 participant has been assigned to a position for nine months, the 
 participant may not continue in that assignment unless the 
 maximum number of hours a participant works is no greater than 
 the amount of the MFIP standard of need divided by the rate of 
 pay for individuals employed in the same or similar occupations 
 by the same employer at the same site.  This limit does not 
 apply if it would prevent a participant from counting toward the 
 federal work participation rate. 

    HIST: 1997 c 85 art 1 s 54; 1999 c 245 art 6 s 78; 1Sp2001 c 9 
 art 10 s 66 

     256J.68 Injury protection for work experience 
  participants. 

    Subdivision 1.    Applicability.  (a) This section must 
 be used to determine payment of any claims resulting from an 
 alleged injury or death of a person participating in a county or 
 a tribal community work experience program that is approved by 
 the commissioner and is operated by: 

    (i) the county agency; 

    (ii) the tribe; 

    (iii) a department of the state; or 

    (iv) a community-based organization under contract, prior 
 to April 1, 1997, with a county agency to provide a community 
 work experience program or a food stamp community work 
 experience program, provided the organization has not 
 experienced any individual injury loss or claim greater than 
 $1,000. 

    (b) This determination method is available to the 
 community-based organization under paragraph (a), clause (iv), 
 only for claims incurred by participants in the community work 
 experience program or the food stamp community work experience 
 program. 

    (c) This determination method applies to work experience 
 programs authorized by the commissioner for persons applying for 
 or receiving cash assistance and food stamps, and to the 
 Minnesota parent's fair share program and the community service 
 program under section 518.551, subdivision 5a, in a county with 
 an approved community investment program for obligors. 

    Subd. 2.    Investigation of the claim.  Claims that are 
 subject to this section must be investigated by the county 
 agency or the tribal program responsible for supervising the 
 work to determine whether the claimed injury occurred, whether 
 the claimed medical expenses are reasonable, and whether the 
 loss is covered by the claimant's insurance.  If insurance 
 coverage is established, the county agency or tribal program 
 shall submit the claim to the appropriate insurance entity for 
 payment.  The investigating county agency or tribal program 
 shall submit all valid claims, in the amount net of any 
 insurance payments, to the Department of Human Services. 

    Subd. 3.    Submission of claim.  The commissioner shall 
 submit all claims for permanent partial disability compensation 
 to the commissioner of labor and industry.  The commissioner of 
 labor and industry shall review all submitted claims and 
 recommend to the Department of Human Services an amount of 
 compensation comparable to that which would be provided under 
 the permanent partial disability compensation schedule of 
 section 176.101, subdivision 2a. 

    Subd. 4.    Claims less than $1,000.  The commissioner 
 shall approve a claim of $1,000 or less for payment if 
 appropriated funds are available, if the county agency or tribal 
 program responsible for supervising the work has made the 
 determinations required by this section, and if the work program 
 was operated in compliance with the safety provisions of this 
 section.  The commissioner shall pay the portion of an approved 
 claim of $1,000 or less that is not covered by the claimant's 
 insurance within three months of the date of submission.  On or 
 before February 1 of each year, the commissioner shall submit to 
 the appropriate committees of the senate and the house of 
 representatives a list of claims of $1,000 or less paid during 
 the preceding calendar year and shall be reimbursed by 
 legislative appropriation for any claims that exceed the 
 original appropriation provided to the commissioner to operate 
 this program.  Any unspent money from this appropriation shall 
 carry over to the second year of the biennium, and any unspent 
 money remaining at the end of the second year shall be returned 
 to the state general fund. 

    Subd. 5.    Claims more than $1,000.  On or before 
 February 1 of each year, the commissioner shall submit to the 
 appropriate committees of the senate and the house of 
 representatives a list of claims in excess of $1,000 and a list 
 of claims of $1,000 or less that were submitted to but not paid 
 by the commissioner, together with any recommendations of 
 appropriate compensation.  These claims shall be heard and 
 determined by the appropriate committees of the senate and house 
 of representatives and, if approved, must be paid under the 
 legislative claims procedure. 

    Subd. 6.    Compensation for certain costs.  
 Compensation paid under this section is limited to reimbursement 
 for reasonable medical expenses and permanent partial disability 
 compensation for disability in like amounts as allowed in 
 section 176.101, subdivision 2a.  Compensation for injuries 
 resulting in death shall include reasonable medical expenses and 
 burial expenses in addition to payment to the participant's 
 estate in an amount up to $200,000.  No compensation shall be 
 paid under this section for pain and suffering, lost wages, or 
 other benefits provided in chapter 176.  Payments made under 
 this section shall be reduced by any proceeds received by the 
 claimant from any insurance policy covering the loss.  For the 
 purposes of this section, "insurance policy" does not include 
 the medical assistance program authorized under chapter 256B or 
 the general assistance medical care program authorized under 
 chapter 256D. 

    Subd. 7.    Exclusive procedure.  The procedure 
 established by this section is exclusive of all other legal, 
 equitable, and statutory remedies against the state, its 
 political subdivisions, or employees of the state or its 
 political subdivisions.  The claimant shall not be entitled to 
 seek damages from any state, county, tribal, or reservation 
 insurance policy or self-insurance program. 

    Subd. 8.    Invalid claims.  A claim is not valid for 
 purposes of this section if the county agency responsible for 
 supervising the work cannot verify to the commissioner: 

    (1) that appropriate safety training and information is 
 provided to all persons being supervised by the agency under 
 this section; and 

    (2) that all programs involving work by those persons 
 comply with federal Occupational Safety and Health 
 Administration and state Department of Labor and Industry safety 
 standards.  A claim that is not valid because of failure to 
 verify safety training or compliance with safety standards will 
 not be paid by the Department of Human Services or through the 
 legislative claims process and must be heard, decided, and paid, 
 if appropriate, by the local government unit or tribal program 
 responsible for supervising the work of the claimant. 

    HIST: 1997 c 85 art 1 s 55 

     256J.69 Grant diversion. 

    Subdivision 1.    Establishing the grant diversion 
 program.  (a) County agencies may develop grant diversion 
 programs for MFIP participants participating in employment and 
 training services.  A county agency that chooses to provide 
 grant diversion may divert to an employer part or all of the 
 MFIP cash payment for the participant's assistance unit, in 
 compliance with federal regulations and laws.  Such payments to 
 an employer are to subsidize employment for MFIP participants as 
 an alternative to public assistance payments. 

    (b) In addition to diverting the MFIP grant to the 
 employer, employment and training funds may be used to subsidize 
 the grant diversion placement. 

    (c) Participants in grant diversion shall be compensated by 
 the employer at the same rates, including periodic increases, as 
 similarly situated employees or trainees and in accordance with 
 applicable law, but in no event less than the federal or 
 applicable state minimum wage, whichever is higher. 

    Subd. 2.    Training and placement.  (a) County agencies 
 shall limit the length of training to nine months.  Placement in 
 a grant diversion training position with an employer is for the 
 purpose of training and employment with the same employer who 
 has agreed to retain the person upon satisfactory completion of 
 training. 

    (b) Placement of any participant in a grant diversion 
 subsidized training position must be compatible with the 
 assessment and employment plan or employability development plan 
 established for the recipient under section 256J.521. 

    HIST: 1997 c 85 art 1 s 56; 1Sp2001 c 9 art 10 s 66; 1Sp2003 c 
 14 art 1 s 97 

     256J.72 Nondisplacement in work activities. 

    Subdivision 1.    Nondisplacement protection.  For job 
 assignments under jobs programs established under this chapter 
 or chapter 256, 256D, or 256K, the county agency must provide 
 written notification to and obtain the written concurrence of 
 the appropriate exclusive bargaining representatives with 
 respect to job duties covered under collective bargaining 
 agreements and ensure that no work assignment under this chapter 
 or chapter 256, 256D, or 256K results in: 

    (1) termination, layoff, or reduction of the work hours of 
 an employee for the purpose of hiring an individual under this 
 section; 

    (2) the hiring of an individual if any other person is on 
 layoff, including seasonal layoff, from the same or a 
 substantially equivalent job; 

    (3) any infringement of the promotional opportunities of 
 any currently employed individual; 

    (4) the impairment of existing contract for services of 
 collective bargaining agreements; or 

    (5) a participant filling an established unfilled position 
 vacancy, except for on-the-job training. 

    The written notification must be provided to the 
 appropriate exclusive bargaining representatives at least 14 
 days in advance of placing recipients in temporary public 
 service employment.  The notice must include the number of 
 individuals involved, their work locations and anticipated hours 
 of work, a summary of the tasks to be performed, and a 
 description of how the individuals will be trained and 
 supervised. 

    Subd. 2.    Dispute resolution.  (a) If there is a 
 dispute between an exclusive bargaining representative and a 
 county provider or employer over whether job duties are within 
 the scope of a collective bargaining unit, the exclusive 
 bargaining representative, the county, the provider, or the 
 employer may petition the Bureau of Mediation Services to 
 determine if the job duties are within the scope of a collective 
 bargaining unit, and the bureau shall render a binding decision. 

    (b) In the event of a dispute under this section, the 
 parties may: 

    (1) use a grievance and arbitration procedure of an 
 existing collective bargaining agreement to process a dispute 
 over whether a violation of the nondisplacement provisions has 
 occurred; or 

    (2) if no grievance and arbitration procedure is in place, 
 either party may submit the dispute to the bureau.  The 
 commissioner of the Bureau of Mediation Services shall establish 
 a procedure for a neutral, binding resolution of the dispute. 

    Subd. 3.    Status of participant.  A participant may 
 not work in a temporary public service or community service job 
 for a public employer for more than 67 working days or 536 
 hours, whichever is greater, as part of a work program 
 established under this chapter, or chapter 256, 256D, or 256K.  
 A participant who exceeds the time limits in this subdivision is 
 a public employee, as that term is used in chapter 179A.  Upon 
 the written request of the exclusive bargaining representative, 
 a county or public service employer shall make available to the 
 affected exclusive bargaining representative a report of hours 
 worked by participants in temporary public service or community 
 service jobs. 

    HIST: 1997 c 85 art 1 s 57 

     256J.74 Relationship to other programs. 

    Subdivision 1.    Social services.  The county agency 
 shall refer a participant for social services that are offered 
 in the county of financial responsibility according to the 
 criteria established by that county agency.  A payment issued 
 from federal funds under title XX of the Social Security Act, 
 state funds under the Children and Community Services Act, 
 federal or state child welfare funds, or county funds in a 
 payment month must not restrict MFIP eligibility or reduce the 
 monthly assistance payment for that participant. 

    Subd. 2.    Concurrent eligibility, limitations.  (a) An 
 individual whose needs have been otherwise provided for in 
 another state, in whole or in part by county, state, or federal 
 dollars during a month, is ineligible to receive MFIP for the 
 month.  

    (b) A county agency must not count an applicant or 
 participant as a member of more than one assistance unit in this 
 state in a given payment month, except as provided in clauses 
 (1) and (2). 

    (1) A participant who is a member of an assistance unit is 
 eligible to be included in a second assistance unit the month 
 after the month the participant joins the second unit. 

    (2) An applicant whose needs are met through federal, 
 state, or local foster care payments for the first part of an 
 application month is eligible to receive assistance for the 
 remaining part of the month in which the applicant returns 
 home.  Foster care payments must be considered prorated payments 
 rather than a duplication of MFIP need. 

    Subd. 3. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 4.    Medical assistance.  Medical assistance 
 eligibility for MFIP participants shall be determined as 
 described in chapter 256B. 

    Subd. 5.    Food stamps.  For any month an individual 
 receives Food Stamp Program benefits, the individual is not 
 eligible for the MFIP food portion of assistance, except as 
 provided under section 256J.28, subdivision 5. 

    HIST: 1997 c 85 art 1 s 58; 1998 c 407 art 6 s 106,107; 1999 c 
 245 art 6 s 79; 1Sp2001 c 9 art 10 s 66; 2005 c 98 art 1 s 15 

     256J.75 County of financial responsibility policies. 

    Subdivision 1.    County of financial responsibility.  
 The county of financial responsibility is the county in which a 
 minor child or pregnant woman lives on the date the application 
 is signed, unless subdivision 4 applies.  When more than one 
 county is financially responsible for the members of an 
 assistance unit, financial responsibility must be assigned to a 
 single county beginning the first day of the calendar month 
 after the assistance unit members are required to be in a single 
 assistance unit.  Financial responsibility must be assigned to 
 the county that was initially responsible for the assistance 
 unit member with the earliest date of application.  The county 
 in which the assistance unit is currently residing becomes 
 financially responsible for the entire assistance unit beginning 
 two full calendar months after the month in which financial 
 responsibility was consolidated in one county. 

    Subd. 2.    Change in residence.  (a) When an assistance 
 unit moves from one county to another and continues to receive 
 assistance, the new county of residence becomes the county of 
 financial responsibility when that assistance unit has lived in 
 that county in nonexcluded status for two full calendar months.  
 "Nonexcluded status" means the period of residence that is not 
 considered excluded time under section 256G.02, subdivision 6.  
 When a minor child moves from one county to another to reside 
 with a different caregiver, the caregiver in the former county 
 is eligible to receive assistance for that child only through 
 the last day of the month of the move.  The caregiver in the new 
 county becomes eligible to receive assistance for the child the 
 first day of the month following the move or the date of 
 application, whichever is later. 

    (b) When an applicant moves from one county to another 
 while the application is pending, the county where application 
 first occurred is the county of financial responsibility until 
 the applicant has lived in the new county for two full calendar 
 months, unless the applicant's move is covered under section 
 256G.02, subdivision 6. 

    Subd. 3.    Responsibility for incorrect assistance 
 payments.  A county of residence, when different from the 
 county of financial responsibility, will be charged by the 
 commissioner for the value of incorrect assistance payments paid 
 to or on behalf of a person who was not eligible to receive that 
 amount.  Incorrect payments include payments to an ineligible 
 person or family resulting from decisions, failures to act, 
 miscalculations, or overdue recertification.  However, financial 
 responsibility does not accrue for a county when the 
 recertification is overdue at the time the referral is received 
 by the county of residence or when the county of financial 
 responsibility does not act on the recommendation of the county 
 of residence.  

    Subd. 4.    Excluded time.  When an applicant or 
 participant resides in an excluded time facility as described in 
 section 256G.02, subdivision 6, the county that is financially 
 responsible for the applicant or participant is the county in 
 which the applicant or participant last resided outside such a 
 facility immediately before entering the facility.  When an 
 applicant or participant has not resided in this state for any 
 time other than excluded time as defined in section 256G.02, 
 subdivision 6, the county that is financially responsible for 
 the applicant or participant is the county in which the 
 applicant or participant resides on the date the application is 
 signed. 

    HIST: 1997 c 85 art 1 s 59; 1Sp2003 c 14 art 1 s 98 

     256J.751 County performance management. 

    Subdivision 1.    Monthly county caseload report.  The 
 commissioner shall report monthly to each county the following 
 caseload information: 

    (1) total number of cases receiving MFIP, and subtotals of 
 cases with one eligible parent, two eligible parents, and an 
 eligible caregiver who is not a parent; 

    (2) total number of child only assistance cases; 

    (3) total number of eligible adults and children receiving 
 an MFIP grant, and subtotals for cases with one eligible parent, 
 two eligible parents, an eligible caregiver who is not a parent, 
 and child only cases; 

    (4) number of cases with an exemption from the 60-month 
 time limit based on a family violence waiver; 

    (5) number of MFIP cases with work hours, and subtotals for 
 cases with one eligible parent, two eligible parents, and an 
 eligible caregiver who is not a parent; 

    (6) number of employed MFIP cases, and subtotals for cases 
 with one eligible parent, two eligible parents, and an eligible 
 caregiver who is not a parent; 

    (7) average monthly gross earnings, and averages for 
 subgroups of cases with one eligible parent, two eligible 
 parents, and an eligible caregiver who is not a parent; 

    (8) number of employed cases receiving only the food 
 portion of assistance; 

    (9) number of parents or caregivers exempt from work 
 activity requirements, with subtotals for each exemption type; 
 and 

    (10) number of cases with a sanction, with subtotals by 
 level of sanction for cases with one eligible parent, two 
 eligible parents, and an eligible caregiver who is not a parent. 

    Subd. 2.    Quarterly comparison report.  The 
 commissioner shall report quarterly to all counties on each 
 county's performance on the following measures: 

    (1) percent of MFIP caseload working in paid employment; 

    (2) percent of MFIP caseload receiving only the food 
 portion of assistance; 

    (3) number of MFIP cases that have left assistance; 

    (4) median placement wage rate; 

    (5) caseload by months of TANF assistance; 

    (6) percent of MFIP and diversionary work program (DWP) 
 cases off cash assistance or working 30 or more hours per week 
 at one-year, two-year, and three-year follow-up points from a 
 baseline quarter.  This measure is called the self-support 
 index.  The commissioner shall report quarterly an expected 
 range of performance for each county, county grouping, and tribe 
 on the self-support index.  The expected range shall be derived 
 by a statistical methodology developed by the commissioner in 
 consultation with the counties and tribes.  The statistical 
 methodology shall control differences across counties in 
 economic conditions and demographics of the MFIP and DWP case 
 load; and 

    (7) the MFIP work participation rate, defined as the 
 participation requirements specified in title 1 of Public Law 
 104-193 applied to all MFIP cases except child only cases. 

    Subd. 3. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 4. Repealed, 1Sp2003 c 14 art 1 s 107 

    Subd. 5.    Failure to meet federal performance standards. 
  (a) If sanctions occur for failure to meet the performance 
 standards specified in title 1 of Public Law 104-193 of the 
 Personal Responsibility and Work Opportunity Act of 1996, the 
 state shall pay 88 percent of the sanction.  The remaining 12 
 percent of the sanction will be paid by the counties.  The 
 county portion of the sanction will be distributed across all 
 counties in proportion to each county's percentage of the MFIP 
 average monthly caseload during the period for which the 
 sanction was applied. 

    (b) If a county fails to meet the performance standards 
 specified in title 1 of Public Law 104-193 of the Personal 
 Responsibility and Work Opportunity Act of 1996 for any year, 
 the commissioner shall work with counties to organize a joint 
 state-county technical assistance team to work with the county.  
 The commissioner shall coordinate any technical assistance with 
 other departments and agencies including the Departments of 
 Employment and Economic Development and Education as necessary 
 to achieve the purpose of this paragraph. 

    (c) For state performance measures, a low-performing county 
 is one that: 

    (1) performs below the bottom of their expected range for 
 the measure in subdivision 2, clause (7), in an annualized 
 measurement reported in October of each year; or 

    (2) performs below 40 percent for the measure in 
 subdivision 2, clause (8), as averaged across the four quarterly 
 measurements for the year, or the ten counties with the lowest 
 rates if more than ten are below 40 percent. 

    (d) Low-performing counties under paragraph (c) must engage 
 in corrective action planning as defined by the commissioner.  
 The commissioner may coordinate technical assistance as 
 specified in paragraph (b) for low-performing counties under 
 paragraph (c). 

    HIST: 1999 c 245 art 6 s 80; 1Sp2001 c 9 art 10 s 54; 2002 c 
 379 art 1 s 113; 2003 c 130 s 12; 1Sp2003 c 14 art 1 s 99-101; 
 2004 c 206 s 52; 2004 c 288 art 4 s 54; 2005 c 98 art 1 s 16; 
 2005 c 159 art 5 s 10,11 

  256J.76 Repealed, 1Sp2003 c 14 art 1 s 107 

     256J.77 Aging of cash benefits. 

    Cash benefits under chapters 256D, 256J, and 256K by 
 warrants or electronic benefit transfer that have not been 
 accessed within 90 days of issuance shall be canceled.  Cash 
 benefits may be replaced after they are canceled, for up to one 
 year after the date of issuance, if failure to do so would place 
 the client or family at risk.  For purposes of this section, 
 "accessed" means cashing a warrant or making at least one 
 withdrawal from benefits deposited in an electronic benefit 
 account. 

    HIST: 1998 c 407 art 6 s 108 

CHILD ONLY TANF PROGRAM

     256J.88 Child only TANF program. 

    Children who receive assistance under this chapter, in 
 which the assistance unit does not include a caregiver, but only 
 includes a minor child, shall become part of the program 
 established under this section. 

    HIST: 2000 c 488 art 10 s 24 

DIVERSIONARY WORK PROGRAM

     256J.95 Diversionary work program. 

    Subdivision 1.    Establishing a diversionary work program 
 (DWP).  (a) The Personal Responsibility and Work Opportunity 
 Reconciliation Act of 1996, Public Law 104-193, establishes 
 block grants to states for temporary assistance for needy 
 families (TANF).  TANF provisions allow states to use TANF 
 dollars for nonrecurrent, short-term diversionary benefits.  The 
 diversionary work program established on July 1, 2003, is 
 Minnesota's TANF program to provide short-term diversionary 
 benefits to eligible recipients of the diversionary work program.

    (b) The goal of the diversionary work program is to provide 
 short-term, necessary services and supports to families which 
 will lead to unsubsidized employment, increase economic 
 stability, and reduce the risk of those families needing longer 
 term assistance, under the Minnesota family investment program 
 (MFIP). 

    (c) When a family unit meets the eligibility criteria in 
 this section, the family must receive a diversionary work 
 program grant and is not eligible for MFIP. 

    (d) A family unit is eligible for the diversionary work 
 program for a maximum of four consecutive months.  During the 
 four consecutive months, family maintenance needs as defined in 
 subdivision 2, shall be vendor paid, up to the cash portion of 
 the MFIP standard of need for the same size household.  To the 
 extent there is a balance available between the amount paid for 
 family maintenance needs and the cash portion of the 
 transitional standard, a personal needs allowance of up to $70 
 per DWP recipient in the family unit shall be issued.  The 
 personal needs allowance payment plus the family maintenance 
 needs shall not exceed the cash portion of the MFIP standard of 
 need.  Counties may provide supportive and other allowable 
 services funded by the MFIP consolidated fund under section 
 256J.626 to eligible participants during the four-month 
 diversionary period. 

    Subd. 2.    Definitions.  The terms used in this section 
 have the following meanings. 

    (a) "Diversionary Work Program (DWP)" means the program 
 established under this section. 

    (b) "Employment plan" means a plan developed by the job 
 counselor and the participant which identifies the participant's 
 most direct path to unsubsidized employment, lists the specific 
 steps that the caregiver will take on that path, and includes a 
 timetable for the completion of each step.  For participants who 
 request and qualify for a family violence waiver in section 
 256J.521, subdivision 3, an employment plan must be developed by 
 the job counselor, the participant, and a person trained in 
 domestic violence and follow the employment plan provisions in 
 section 256J.521, subdivision 3.  Employment plans under this 
 section shall be written for a period of time not to exceed four 
 months. 

    (c) "Employment services" means programs, activities, and 
 services in this section that are designed to assist 
 participants in obtaining and retaining employment. 

    (d) "Family maintenance needs" means current housing costs 
 including rent; manufactured home lot rental costs, or monthly 
 principal, interest, insurance premiums, and property taxes due 
 for mortgages or contracts for deed; association fees required 
 for homeownership; utility costs for current month expenses of 
 gas and electric, garbage, water and sewer; and a flat rate of 
 $35 for telephone services. 

    (e) "Family unit" means a group of people applying for or 
 receiving DWP benefits together.  For the purposes of 
 determining eligibility for this program, the composition of the 
 family unit is determined according to section 256J.24, 
 subdivisions 1 to 4. 

    (f) "Minnesota family investment program (MFIP)" means the 
 assistance program as defined in section 256J.08, subdivision 57.

    (g) "Personal needs allowance" means an allowance of up to 
 $70 per month per DWP unit member to pay for expenses such as 
 household products and personal products. 

    (h) "Work activities" means allowable work activities as 
 defined in section 256J.49, subdivision 13. 

    (i) "Caregiver" means the caregiver as defined in section 
 256J.08, subdivision 11. 

    Subd. 3.    Eligibility for diversionary work program.  
 (a) Except for the categories of family units listed below, all 
 family units who apply for cash benefits and who meet MFIP 
 eligibility as required in sections 256J.11 to 256J.15 are 
 eligible and must participate in the diversionary work program.  
 Family units that are not eligible for the diversionary work 
 program include: 

    (1) child only cases; 

    (2) a single-parent family unit that includes a child under 
 12 weeks of age.  A parent is eligible for this exception once 
 in a parent's lifetime and is not eligible if the parent has 
 already used the previously allowed child under age one 
 exemption from MFIP employment services; 

    (3) a minor parent without a high school diploma or its 
 equivalent; 

    (4) an 18- or 19-year-old caregiver without a high school 
 diploma or its equivalent who chooses to have an employment plan 
 with an education option; 

    (5) a caregiver age 60 or over; 

    (6) family units with a caregiver who received DWP benefits 
 in the 12 months prior to the month the family applied for DWP, 
 except as provided in paragraph (c); 

    (7) family units with a caregiver who received MFIP within 
 the 12 months prior to the month the family unit applied for 
 DWP; 

    (8) a family unit with a caregiver who received 60 or more 
 months of TANF assistance; and 

    (9) a family unit with a caregiver who is disqualified from 
 DWP or MFIP due to fraud. 

    (b) A two-parent family must participate in DWP unless both 
 caregivers meet the criteria for an exception under paragraph 
 (a), clauses (1) through (5), or the family unit includes a 
 parent who meets the criteria in paragraph (a), clause (6), (7), 
 (8), or (9). 

    (c) Once DWP eligibility is determined, the four months run 
 consecutively.  If a participant leaves the program for any 
 reason and reapplies during the four-month period, the county 
 must redetermine eligibility for DWP. 

    Subd. 4.    Cooperation with program requirements.  (a) 
 To be eligible for DWP, an applicant must comply with the 
 requirements of paragraphs (b) to (d). 

    (b) Applicants and participants must cooperate with the 
 requirements of the child support enforcement program but will 
 not be charged a fee under section 518.551, subdivision 7. 

    (c) The applicant must provide each member of the family 
 unit's Social Security number to the county agency.  This 
 requirement is satisfied when each member of the family unit 
 cooperates with the procedures for verification of numbers, 
 issuance of duplicate cards, and issuance of new numbers which 
 have been established jointly between the Social Security 
 Administration and the commissioner. 

    (d) Before DWP benefits can be issued to a family unit, the 
 caregiver must, in conjunction with a job counselor, develop and 
 sign an employment plan.  In two-parent family units, both 
 parents must develop and sign employment plans before benefits 
 can be issued.  Food support and health care benefits are not 
 contingent on the requirement for a signed employment plan. 

    Subd. 5.    Submitting application form.  The 
 eligibility date for the diversionary work program begins with 
 the date the signed combined application form (CAF) is received 
 by the county agency or the date diversionary work program 
 eligibility criteria are met, whichever is later.  The county 
 agency must inform the applicant that any delay in submitting 
 the application will reduce the benefits paid for the month of 
 application.  The county agency must inform a person that an 
 application may be submitted before the person has an interview 
 appointment.  Upon receipt of a signed application, the county 
 agency must stamp the date of receipt on the face of the 
 application.  The applicant may withdraw the application at any 
 time prior to approval by giving written or oral notice to the 
 county agency.  The county agency must follow the notice 
 requirements in section 256J.09, subdivision 3, when issuing a 
 notice confirming the withdrawal. 

    Subd. 6.    Initial screening of applications.  Upon 
 receipt of the application, the county agency must determine if 
 the applicant may be eligible for other benefits as required in 
 sections 256J.09, subdivision 3a, and 256J.28, subdivisions 1 
 and 5.  The county must screen and the applicant must apply for 
 other benefits as required under section 256J.30, subdivision 
 2.  The county must also follow the provisions in section 
 256J.09, subdivision 3b, clause (2). 

    Subd. 7.    Program and processing standards.  (a) The 
 interview to determine financial eligibility for the 
 diversionary work program must be conducted within five working 
 days of the receipt of the cash application form.  During the 
 intake interview, the financial worker must discuss: 

    (1) the goals, requirements, and services of the 
 diversionary work program; 

    (2) the availability of child care assistance.  If child 
 care is needed, the worker must obtain a completed application 
 for child care from the applicant before the interview is 
 terminated.  The same day the application for child care is 
 received, the application must be forwarded to the appropriate 
 child care worker.  For purposes of eligibility for child care 
 assistance under chapter 119B, DWP participants shall be 
 eligible for the same benefits as MFIP recipients; and 

    (3) if the applicant has not requested food support and 
 health care assistance on the application, the county agency 
 shall, during the interview process, talk with the applicant 
 about the availability of these benefits. 

    (b) The county shall follow section 256J.74, subdivision 2, 
 paragraph (b), clauses (1) and (2), when an applicant or a 
 recipient of DWP has a person who is a member of more than one 
 assistance unit in a given payment month. 

    (c) If within 30 days the county agency cannot determine 
 eligibility for the diversionary work program, the county must 
 deny the application and inform the applicant of the decision 
 according to the notice provisions in section 256J.31.  A family 
 unit is eligible for a fair hearing under section 256J.40.  

    Subd. 8.    Verification requirements.  (a) A county 
 agency must only require verification of information necessary 
 to determine DWP eligibility and the amount of the payment.  The 
 applicant or participant must document the information required 
 or authorize the county agency to verify the information.  The 
 applicant or participant has the burden of providing documentary 
 evidence to verify eligibility.  The county agency shall assist 
 the applicant or participant in obtaining required documents 
 when the applicant or participant is unable to do so. 

    (b) A county agency must not request information about an 
 applicant or participant that is not a matter of public record 
 from a source other than county agencies, the Department of 
 Human Services, or the United States Department of Health and 
 Human Services without the person's prior written consent.  An 
 applicant's signature on an application form constitutes consent 
 for contact with the sources specified on the application.  A 
 county agency may use a single consent form to contact a group 
 of similar sources, but the sources to be contacted must be 
 identified by the county agency prior to requesting an 
 applicant's consent. 

    (c) Factors to be verified shall follow section 256J.32, 
 subdivision 4.  Except for personal needs, family maintenance 
 needs must be verified before the expense can be allowed in the 
 calculation of the DWP grant. 

    Subd. 9.    Property and income limitations.  The asset 
 limits and exclusions in section 256J.20 apply to applicants and 
 recipients of DWP.  All payments, unless excluded in section 
 256J.21, must be counted as income to determine eligibility for 
 the diversionary work program.  The county shall treat income as 
 outlined in section 256J.37, except for subdivision 3a.  The 
 initial income test and the disregards in section 256J.21, 
 subdivision 3, shall be followed for determining eligibility for 
 the diversionary work program. 

    Subd. 10.    Diversionary work program grant.  (a) The 
 amount of cash benefits that a family unit is eligible for under 
 the diversionary work program is based on the number of persons 
 in the family unit, the family maintenance needs, personal needs 
 allowance, and countable income.  The county agency shall 
 evaluate the income of the family unit that is requesting 
 payments under the diversionary work program.  Countable income 
 means gross earned and unearned income not excluded or 
 disregarded under MFIP.  The same disregards for earned income 
 that are allowed under MFIP are allowed for the diversionary 
 work program. 

    (b) The DWP grant is based on the family maintenance needs 
 for which the DWP family unit is responsible plus a personal 
 needs allowance.  Housing and utilities, except for telephone 
 service, shall be vendor paid.  Unless otherwise stated in this 
 section, actual housing and utility expenses shall be used when 
 determining the amount of the DWP grant. 

    (c) The maximum monthly benefit amount available under the 
 diversionary work program is the difference between the family 
 unit's needs under paragraph (b) and the family unit's countable 
 income not to exceed the cash portion of the MFIP standard of 
 need as defined in section 256J.08, subdivision 55a, for the 
 family unit's size.  

    (d) Once the county has determined a grant amount, the DWP 
 grant amount will not be decreased if the determination is based 
 on the best information available at the time of approval and 
 shall not be decreased because of any additional income to the 
 family unit.  The grant must be increased if a participant later 
 verifies an increase in family maintenance needs or family unit 
 size.  The minimum cash benefit amount, if income and asset 
 tests are met, is $10.  Benefits of $10 shall not be vendor paid.

    (e) When all criteria are met, including the development of 
 an employment plan as described in subdivision 14 and 
 eligibility exists for the month of application, the amount of 
 benefits for the diversionary work program retroactive to the 
 date of application is as specified in section 256J.35, 
 paragraph (a). 

    (f) Any month during the four-month DWP period that a 
 person receives a DWP benefit directly or through a vendor 
 payment made on the person's behalf, that person is ineligible 
 for MFIP or any other TANF cash assistance program except for 
 benefits defined in section 256J.626, subdivision 2, clause (1). 

    If during the four-month period a family unit that receives 
 DWP benefits moves to a county that has not established a 
 diversionary work program, the family unit may be eligible for 
 MFIP the month following the last month of the issuance of the 
 DWP benefit. 

    Subd. 11.    Universal participation required.  (a) All 
 DWP caregivers, except caregivers who meet the criteria in 
 paragraph (d), are required to participate in DWP employment 
 services.  Except as specified in paragraphs (b) and (c), 
 employment plans under DWP must, at a minimum, meet the 
 requirements in section 256J.55, subdivision 1. 

    (b) A caregiver who is a member of a two-parent family that 
 is required to participate in DWP who would otherwise be 
 ineligible for DWP under subdivision 3 may be allowed to develop 
 an employment plan under section 256J.521, subdivision 2, 
 paragraph (c), that may contain alternate activities and reduced 
 hours.  

    (c) A participant who is a victim of family violence shall 
 be allowed to develop an employment plan under section 256J.521, 
 subdivision 3.  A claim of family violence must be documented by 
 the applicant or participant by providing a sworn statement 
 which is supported by collateral documentation in section 
 256J.545, paragraph (b). 

    (d) One parent in a two-parent family unit that has a 
 natural born child under 12 weeks of age is not required to have 
 an employment plan until the child reaches 12 weeks of age 
 unless the family unit has already used the exclusion under 
 section 256J.561, subdivision 3, or the previously allowed child 
 under age one exemption under section 256J.56, paragraph (a), 
 clause (5). 

    (e) The provision in paragraph (d) ends the first full 
 month after the child reaches 12 weeks of age.  This provision 
 is allowable only once in a caregiver's lifetime.  In a 
 two-parent household, only one parent shall be allowed to use 
 this category. 

    (f) The participant and job counselor must meet within ten 
 working days after the child reaches 12 weeks of age to revise 
 the participant's employment plan.  The employment plan for a 
 family unit that has a child under 12 weeks of age that has 
 already used the exclusion in section 256J.561 or the previously 
 allowed child under age one exemption under section 256J.56, 
 paragraph (a), clause (5), must be tailored to recognize the 
 caregiving needs of the parent. 

    Subd. 12.    Conversion or referral to MFIP.  (a) If at 
 any time during the DWP application process or during the 
 four-month DWP eligibility period, it is determined that a 
 participant is unlikely to benefit from the diversionary work 
 program, the county shall convert or refer the participant to 
 MFIP as specified in paragraph (d).  Participants who are 
 determined to be unlikely to benefit from the diversionary work 
 program must develop and sign an employment plan.  Participants 
 who meet any one of the criteria in paragraph (b) shall be 
 considered to be unlikely to benefit from DWP, provided the 
 necessary documentation is available to support the 
 determination. 

    (b) A participant who: 

    (1) has been determined by a qualified professional as 
 being unable to obtain or retain employment due to an illness, 
 injury, or incapacity that is expected to last at least 60 days; 

    (2) is required in the home as a caregiver because of the 
 illness, injury, or incapacity, of a family member, or a 
 relative in the household, or a foster child, and the illness, 
 injury, or incapacity and the need for a person to provide 
 assistance in the home has been certified by a qualified 
 professional and is expected to continue more than 60 days; 

    (3) is determined by a qualified professional as being 
 needed in the home to care for a child or adult meeting the 
 special medical criteria in section 256J.561, subdivision 2, 
 paragraph (d), clause (3); 

    (4) is pregnant and is determined by a qualified 
 professional as being unable to obtain or retain employment due 
 to the pregnancy; or 

    (5) has applied for SSI or SSDI. 

    (c) In a two-parent family unit, both parents must be 
 determined to be unlikely to benefit from the diversionary work 
 program before the family unit can be converted or referred to 
 MFIP. 

    (d) A participant who is determined to be unlikely to 
 benefit from the diversionary work program shall be converted to 
 MFIP and, if the determination was made within 30 days of the 
 initial application for benefits, no additional application form 
 is required.  A participant who is determined to be unlikely to 
 benefit from the diversionary work program shall be referred to 
 MFIP and, if the determination is made more than 30 days after 
 the initial application, the participant must submit a program 
 change request form.  The county agency shall process the 
 program change request form by the first of the following month 
 to ensure that no gap in benefits is due to delayed action by 
 the county agency.  In processing the program change request 
 form, the county must follow section 256J.32, subdivision 1, 
 except that the county agency shall not require additional 
 verification of the information in the case file from the DWP 
 application unless the information in the case file is 
 inaccurate, questionable, or no longer current. 

    (e) The county shall not request a combined application 
 form for a participant who has exhausted the four months of the 
 diversionary work program, has continued need for cash and food 
 assistance, and has completed, signed, and submitted a program 
 change request form within 30 days of the fourth month of the 
 diversionary work program.  The county must process the program 
 change request according to section 256J.32, subdivision 1, 
 except that the county agency shall not require additional 
 verification of information in the case file unless the 
 information is inaccurate, questionable, or no longer current.  
 When a participant does not request MFIP within 30 days of the 
 diversionary work program benefits being exhausted, a new 
 combined application form must be completed for any subsequent 
 request for MFIP. 

    Subd. 13.    Immediate referral to employment services.  
 Within one working day of determination that the applicant is 
 eligible for the diversionary work program, but before benefits 
 are issued to or on behalf of the family unit, the county shall 
 refer all caregivers to employment services.  The referral to 
 the DWP employment services must be in writing and must contain 
 the following information: 

    (1) notification that, as part of the application process, 
 applicants are required to develop an employment plan or the DWP 
 application will be denied; 

    (2) the employment services provider name and phone number; 

    (3) the date, time, and location of the scheduled 
 employment services interview; 

    (4) the immediate availability of supportive services, 
 including, but not limited to, child care, transportation, and 
 other work-related aid; and 

    (5) the rights, responsibilities, and obligations of 
 participants in the program, including, but not limited to, the 
 grounds for good cause, the consequences of refusing or failing 
 to participate fully with program requirements, and the appeal 
 process. 

    Subd. 14.    Employment plan; DWP benefits.  As soon as 
 possible, but no later than ten working days of being notified 
 that a participant is financially eligible for the diversionary 
 work program, the employment services provider shall provide the 
 participant with an opportunity to meet to develop an initial 
 employment plan.  Once the initial employment plan has been 
 developed and signed by the participant and the job counselor, 
 the employment services provider shall notify the county within 
 one working day that the employment plan has been signed.  The 
 county shall issue DWP benefits within one working day after 
 receiving notice that the employment plan has been signed. 

    Subd. 15.    Limitations on certain work activities.  (a)
 Except as specified in paragraphs (b) to (d), employment 
 activities listed in section 256J.49, subdivision 13, are 
 allowable under the diversionary work program. 

    (b) Work activities under section 256J.49, subdivision 13, 
 clause (5), shall be allowable only when in combination with 
 approved work activities under section 256J.49, subdivision 13, 
 clauses (1) to (4), and shall be limited to no more than 
 one-half of the hours required in the employment plan. 

    (c) In order for an English as a second language (ESL) 
 class to be an approved work activity, a participant must: 

    (1) be below a spoken language proficiency level of SPL6 or 
 its equivalent, as measured by a nationally recognized test; and 

    (2) not have been enrolled in ESL for more than 24 months 
 while previously participating in MFIP or DWP.  A participant 
 who has been enrolled in ESL for 20 or more months may be 
 approved for ESL until the participant has received 24 total 
 months. 

    (d) Work activities under section 256J.49, subdivision 13, 
 clause (6), shall be allowable only when the training or 
 education program will be completed within the four-month DWP 
 period.  Training or education programs that will not be 
 completed within the four-month DWP period shall not be approved.

    Subd. 16.    Failure to comply with requirements.  A 
 family unit that includes a participant who fails to comply with 
 DWP employment service or child support enforcement 
 requirements, without good cause as defined in sections 256.741 
 and 256J.57, shall be disqualified from the diversionary work 
 program.  The county shall provide written notice as specified 
 in section 256J.31 to the participant prior to disqualifying the 
 family unit due to noncompliance with employment service or 
 child support.  The disqualification does not apply to food 
 support or health care benefits. 

    Subd. 17.    Good cause for not complying with 
 requirements.  A participant who fails to comply with the 
 requirements of the diversionary work program may claim good 
 cause for reasons listed in sections 256.741 and 256J.57, 
 subdivision 1, clauses (1) to (13).  The county shall not impose 
 a disqualification if good cause exists. 

    Subd. 18.    Reinstatement following disqualification.  
 A participant who has been disqualified from the diversionary 
 work program due to noncompliance with employment services may 
 regain eligibility for the diversionary work program by 
 complying with program requirements.  A participant who has been 
 disqualified from the diversionary work program due to 
 noncooperation with child support enforcement requirements may 
 regain eligibility by complying with child support requirements 
 under section 256.741.  Once a participant has been reinstated, 
 the county shall issue prorated benefits for the remaining 
 portion of the month.  A family unit that has been disqualified 
 from the diversionary work program due to noncompliance shall 
 not be eligible for MFIP or any other TANF cash program for the 
 remainder of the four-month period.  In a two-parent family, 
 both parents must be in compliance before the family unit can 
 regain eligibility for benefits. 

    Subd. 19.    DWP overpayments and underpayments.  DWP 
 benefits are subject to overpayments and underpayments.  Anytime 
 an overpayment or an underpayment is determined for DWP, the 
 correction shall be calculated using prospective budgeting.  
 Corrections shall be determined based on the policy in section 
 256J.34, subdivision 1, paragraphs (a), (b), and (c).  ATM 
 errors must be recovered as specified in section 256J.38, 
 subdivision 5.  Cross program recoupment of overpayments cannot 
 be assigned to or from DWP. 

    Subd. 20. Repealed, 2005 c 98 art 2 s 18 

    HIST: 1Sp2003 c 14 art 1 s 102; 2004 c 288 art 4 s 55-59; 2005 
 c 98 art 1 s 17-21